Total For-Hire Shipments Rise Despite Trucking Decline
A U.S. Transportation Department measure of the amount of freight carried by the nation's for-hire transportation industry rose 0.2% in May from April, the second consecutive monthly gain, and is just 1.5% below the all-time high level hit in December 2014.
Evan Lockridge・Former Business Contributing Editor
July 13, 2016
Freight Transportation Services Index, May 2011 - May 2016. Graphic U.S. DOT
2 min to read
Freight Transportation Services Index, May 2011 - May 2016. Graphic U.S. DOT
A U.S. Transportation Department measure of the amount of freight carried by the nation's for-hire transportation industry rose 0.2% in May from April, the second consecutive monthly gain, and is just 1.5% below the all-time high level hit in December 2014.
Ad Loading...
In figures released Wednesday, The Freight Transportation Services Index (TSI) moved up to a reading of 121.8, it highest level since January. Also, the April index was revised upward to 121.5 from 121.1 while the March index was revised higher to 119.7 from 119.5 in last month’s release.
Ad Loading...
The combined increase of 1.8% in the Freight TSI from March through May is the largest two-month increase since September to November 2014. Despite this improvement, May for-hire freight shipments are down 0.3% from the same month a year earlier.
The April to May Freight TSI gain was due to growth in all freight modes except trucking and air freight, according to the department.
The increase took place as the Federal Reserve Board’s Industrial Production index declined by 0.4% in May, after rising by 0.6% in April. However, personal income, increased by 0.2%, led by personal consumption which increased by 0.4%, while imports of goods increased by 1.9%. Also, overall employment grew, and the ISM Manufacturing Index increased slightly, indicating accelerating manufacturing growth.
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 and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.
Speaking at the TMC Annual Meeting in Nashville, ATA President Chris Spear said trucking faces mounting pressure from rising fuel prices, geopolitical instability, and uncertainty around trade policy.
More than 100,000 new trucking companies enter the industry each year, but regulators manage to audit only a fraction of them. That churn creates opportunities for inexperienced startups — and for “chameleon carriers” that shut down after safety violations and reappear under new identities. Read more from Deborah Lockridge in this commentary.
HDTX is an intimate event that connects heavy-duty trucking fleet managers with industry suppliers through small-group discussions, educational sessions, and structured one-on-one meetings.
Optimal Dynamics says its new Scale platform uses AI agents and optimization to help carriers find and secure freight that improves network balance and profitability.
NACFE's Run on Less - Messy Middle project demonstrates the power of data in helping to guide the future of alternative fuels and powertrains for heavy-duty trucks.
A federal court ruling allows New York City’s congestion pricing program to continue, leaving truck tolls in place for fleets delivering into Manhattan.
Fontaine Modification has introduced a new customer portal designed to give fleets real-time visibility into the truck modification process, addressing one of the most common questions fleet managers face: “Where’s my truck?”
Strong freight rates, rising volumes and tighter capacity push trucking conditions higher, though diesel prices could temper gains in the near term, FTR cautions.