Truck Tonnage Rises 8.2%

This story appears in the Jan. 27 print edition of Transport Topics.

Truck tonnage rose 8.2% last month to cap the strongest year in more than a decade, propelled by continued growth in heavyweight freight and newly resurgent van shipments, American Trucking Associations reported.

The non-seasonally adjusted index increased to 131.7 in December, topping the previous record of 130.9 in November, ATA said Jan. 22.

For all of 2013, tonnage rose 6.2% over 2012, the best pace since 10.1% recorded at the end of 1998. The sequential improvement from November was 0.6%.

“Tonnage ended 2013 on a high note, which fits with many economic indicators as trucking is an excellent reflection of the tangible goods economy,” ATA Chief Economist Bob Costello said.

Among the recent indicators of an improving economy are stronger industrial production and manufacturing reports from the government, as well as a report from purchasing managers indicating increased activity.

“I’m seeing more broad-based gains now,” Costello said.

The improvement extends beyond the tonnage growth generated earlier in 2013, which was fueled by the heavyweight tank truck and flatbed sectors to support oil and gas exploration, as well as increased housing and auto production.

“In addition to the fantastic growth in the heavy-freight sectors, dry-van freight is starting to come around and is growing again, which is something that really hasn’t happened in the recovery so far,” Costello told Transport Topics.

That segment represents a majority of tonnage and a higher percentage of load data compiled by ATA.

Dry-van loads rose 3.8% in October and November, ATA data show, compared with the same months of 2012. ATA hasn’t yet compiled load data for December.

Refrigerated freight rose even faster at 4% in those two months. Both showings are a sharp improvement from the first half of 2013, when there was no load growth in those sectors.

Costello also said bad weather in parts of the United States during December may have held down tonnage growth.

The non-seasonally adjusted tonnage, or freight actually hauled last month, produced an index reading of 123, or 11.3% higher than the corresponding 2012 month. Sequentially, this index fell 1.4%.

“The final quarter was the strongest we’ve seen in a couple of years, rising 2.2% from the third quarter and 9.1% from a year earlier,” Costello said.

Tonnage growth will continue in 2014 at a pace of between 4% and 5%, he said.

ATA’s report also said tonnage in November was revised from a preliminary 2.7% growth to 4.7%.

Another favorable trucking indicator was an index published by Cass Information Systems on Jan. 22 in conjunction with Avondale Partners, showing continued growth.

“Truck tonnage is currently growing at the strongest rate in 3½  years,” that report said, highlighting the acceleration of growth compared with the final quarter of 2012 and the first quarter of 2013. “We expect stronger industrial production, a modestly improved backdrop for the consumer and the continued recovery in housing to support further growth in truck tonnage in 2014.”

Deutsche Bank analyst Justin Yagerman said December results were helped by higher manufacturing and retail sales, as well as easier comparisons with 2012 due to Super    storm Sandy.

David Schrader, vice president of TransCore, said the company’s DAT load board postings rose 49% in December over the same month in 2012, because of unusually bad winter weather and an improving economy.

January activity has remained strong, he said.

Another Cass report, created in conjunction with INTTRA, showed an increase in containerized ocean freight imports of 10.7% in December, based on trade among the United States and its 25 largest cargo partners.

The two largest U.S. ports, Los Angeles and Long Beach, in December together showed increased overall activity of 5.9%.