Trucking Industry Growth Significantly Declines In April 2020 Due To Coronavirus Impact

Headline data for the American Trucking Association (ATA) and the CASS Freight Index show that truck volumes declined and somewhat agree on year-over-year decline.

Analyst Opinion of Truck Transport

The CASS index is inclusive of rail, truck, and air shipments. The ATA truck index is inclusive of only trucking industry member movements (ATA's tonnage data is dominated by contract freight).

I put a heavier weight on the CASS index year-over-year which is consistent with rail and ocean freight. It is not logical that truck freight goes up when industrial production and ocean freight decline - not to mention the continuing effects of the trade war and the coronavirus shutdown.

Econintersect tries to validate truck data across data sources. It appears this month that the truck employment rate of growth continues to slow. Please note using BLS employment data in real-time is risky, as their data is normally backward adjusted (sometimes significantly). Additionally, Econintersect believes that the BLS is not capturing all truck employment.

ATA Trucking

ATA's March truck tonnage contracted 12.2 % and is down 11.3 % year-over-year.

Said ATA Chief Economist Bob Costello:

April's monthly decline was the largest in 26 years when there was a labor strike in April 1994. Considering that April factory output and retail sales plummeted, the large drop in truck freight is not surprising. However, not all fleets saw large declines in April. Those hauling food for grocery stores and those involved in the on-line retail supply chain outperformed most other fleets. Some fleets witnessed very large declines in freight last month.

These historic declines show just how much trucking was impacted by our national response to the COVID-19 pandemic. As the nation starts taking small steps toward reopening, we should see some modest improvements in the freight market, but the size of April's decline gives us an idea of how long the road back may be

1 2
View single page >> |

Disclaimer: No content is to be construed as investment advise and all content is provided for informational purposes only.The reader is solely responsible for determining whether any investment, ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.