For-Hire Freight Shipments Rebound After One-Month Decline

A measure of the amount of freight moved by the nation’s for-hire transportation industry rose 0.6% in July from June, following a single month decline.

The U.S. Transportation Department’s Freight Transportation Services Index registered 122.8, tying the highest level seen so far this year in March and January, and just 0.5% below the record high level of 123.5 in November 2014. The number if 1.4% higher than July a year ago.

The June index was revised to 122.1 from 121.9 in last month’s release. The March, April, and May levels were also revised upward slightly.

The Freight TSI measures the month-to-month changes in freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry from trucking, rail, inland waterways, pipelines and air freight.

The July increase continued the trend that began after the index peaked in November 2014. The index has alternated months of increases and decreases since then, ranging from 0.5% below the November level to 2.1% lower.

The Freight TSI increase was part of broad economic growth in July that was reflected in several measures that impact transportation, according to the U.S. DOT. The Federal Reserve Board’s Industrial Production Index rose 0.6%, the same percentage increase as the Freight TSI, while personal income, employment and housing starts also moved higher.

The DOT said among the different transportation modes, significant increases in trucking and rail carloads led the TSI Freight index upward in July, along with a smaller increase in air freight. Water, pipeline and rail intermodal declined.