Truck Tonnage Plummets in June

The amount of cargo carried by U.S. trucks fell 8.7% in June from the previous month, the American Trucking Associations said.

“[The report] clearly shows the cyclical pattern that characterizes June changes, as tonnage has plunged in years of economic and/or industry recession and risen in times of expansion,” ATA’s Monthly Truck Tonnage Report said.

ATA said since 1989, June has typically been an slow month for trucking, with the average tonnage performance being a decline of 1.9%. However, aside from 1991, this is the worst performance for the industry recorded during the month.

Despite the drop, the truck tonnage index in June still outperformed the index from a year ago – 137.9 to 137.3.

The report also said that despite recent economic weakness, particularly in the manufacturing sector, ATA does not believe this is the beginning of a double-dip recession.

“In conclusion, the recovery has unquestionably slowed down,” the report said. “However it is not inconceivable that a pause would take place at some point during an expansionary period, in fact, it usually does, without leading to a continued economic contraction.”

A slip further into recession would likely make times tougher for trucking because consumer spending and business investment usually decline.

ATA said the upcoming holiday season would be decisive in maintaining the recovery.

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