CCJ | Commercial Carrier Journal : November 2008
Tonnage falls in August
finances T he American Trucking Associations' advanced seasonally adjusted For-Hire Truck Tonnage Index decreased 1.6 percent in August from the July index number, marking the largest month-to-month drop since March. Also, the index fell 0.9 percent in July, a downward revision from the 0.3 percent drop initially reported. In August, the seasonally adjusted tonnage index equaled 113.6, its lowest level since November 2007; the not-seasonally adjusted index decreased 3.4 percent to 115.0 in August. The seasonally adjusted index was 2.6 percent higher compared with August 2007, marking its 10th consecutive year-over-year increase. The gain was more than one percentage point lower than the improvement in July. Year-to-date, the index was up 3.4 percent compared with the same period in 2007. Tonnage contracted 1.7 percent and 1.5 percent in 2006 and 2007, respectively. ATA Chief Economist Bob Costello said freight slowed during July and August preceding an expected slowdown in economic activity, and that year-over-year growth in the index is simply the result of soft tonnage volumes in 2007. We are forecasting a mild recession later this year and early next year, Costello said. Make no mistake about it freight volumes are weakening. Because trucking is a leading economic indicator, Costello said trucking even-tually will see an improvement before the overall economy. ATA calculates the tonnage index based on surveys from its membership and has been doing so since the 1970s. The report includes month-to-month and year-over-year results, relevant economic comparisons and key financial indicators. The baseline year is 2000. Tonnage falls in August ATA's index sees largest monthly drop since March n an enhanced Quick Pay program. Carriers can opt to receive payments through direct deposit, paper check or electronic funds transfer; immedi-ate pay is available for a three percent processing fee, and seven-day pay for a two percent fee. There is no charge for the standard 30-day pay schedule. n Commercial Truck Outlook Report service launched by FTR Associates incorporates information provided for the last 20 years by the company to ACT Publications' Commercial Truck Bus and Trailer Industry Outlook, which is being disbanded at the end of 2008. To receive the report, go to www.ftrassociates.net. n Services announced that its Mobile Resource Management via telemat-ics solution was recognized by the Minnesota High Tech Association as a finalist for its Tekne Award, which honors advancement in Minnesota's technology industry. n acknowledged the certifications by manufacturers that certain advanced lean-burn technology vehicles run-ning on diesel fuel qualify for the alternative motor vehicle tax credit. An $1,800 credit is available for the Mercedes GL 320 Blue Tec, while the Mercedes R 320 Blue Tec qualifies for a $1,550 credit. Buyers of the 2009 Volkswagen Jetta 2.0-liter TDI Sedan or SportWagen can receive a $1,300 tax credit, and the Mercedes ML 320 Blue Tec qualifies for a $900 credit. in brief 36 Commercial Carrier Journal November 2008 American Trucking Associations Chief Economist Bob Costello attributes year-over-year index growth to soft tonnage volumes in 2007. ATA's Truck Tonnage Index (Seasonally Adjusted; 2000 = 100)