Trucking Industry Points to Strong Economic Growth

“America Moves on Trucks” is the trucking industry’s slogan, and there is a lot of truth to it. Trucks account for 67.2% of all the freight tonnage in the U.S. Since much of the freight moved by rail is low value per ton stuff, the Trucking industry collected 81.2% of all the freight transportation revenues. Given that when something is produced, it then has to be moved to the consumer, the trucking industry thus serves as an excellent barometer of the economy, particularly the domestic economy. That barometer is now pointing to extremely sunny skys.

The American Trucking Association (ATA) index rose by 6.8% in November, a huge acceleration over the 0.3% gain in November. It is now up 10.5% year over year. In November it was showing a 6.1% gain. The total tonnage moved in all of 2011 was 5.9% higher than for all of 2010. That is the biggest annual gain in 13 years.

Some of the gain appears to be from trucks taking market share from the rails, but not much. Total rail traffic was up 7.3% year over year in December (as measured by the American Association of Railroads, or AAR). Intermodal traffic, which is the most directly competitive with the truckers (containers moved long distances by train then carried to their final destination by truck) was up 9.4% year over year. The month to month gains though were more subdued, with a total traffic gain of 1.8% and an intermodal gain of 0.4% in December.

Thus, the transportation indicators are strongly suggesting that the economy is headed in the right direction.

Source: Zacks

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