ATA tonnage index drops in April

Although the economy continues to improve, some people may be concerned to hear that trucking tonnage actually dropped last month. However, analysts are suggesting that this is actually no cause for concern.

The American Trucking Association (ATA) announced that its truck tonnage index dropped by 0.7 percent in April from the previous month. The index currently rests at 114.9, while the March level was at 115.6.

Still, experts in the field do not seem concerned with this slight drop, as some noted that it is impossible in this kind of market to grow at a modest rate.

"The drop in April is not a concern. Since freight volumes are so volatile truck tonnage is unlikely to grow every month, even on a seasonally adjusted basis," said Bob Costello, the ATA chief economist. "I expect economic activity, and with it truck freight levels to grow at a moderate pace in the coming months and quarters."

Costello continued that he expected that the economy would once again pick up as the prices in diesel fuel and oil continue to drop.

By Mark Priest

ATA tonnage index drops in April

Wednesday, May 25th, 2011