ATA Truck Tonnage Index Continues to Rise

The American Trucking Association (ATA) reported last week that its advance seasonally adjusted For-Hire Truck Tonnage Index increased during the month of October. The 0.5% increase follows a 1.5% increase in September over the previous month.

The ATA’s Truck Tonnage index is often used as a barometer of the trucking industry’s economic health as a whole, and its continuous growth indicates that the industry is recovering from the economic downturn at a faster rate than the GDP. According to the ATA’s chief economist, Bop Costello: “over the last two months, tonnage is up nearly 2% and is just shy of the recent high in January of this year.”

Not only is this good for the trucking industry, it suggests that the country’s economy as a whole is slowly recovering rather than slipping back into a recession, as a freight tonnage increase results from an increase in the production of goods.

The ATA predicts that growth will slow next year, but that the industrial and trucking industries will continue to recover at a faster rate than the GDP.

To read more, visit:

http://www.truckline.com/pages/article.aspx?id=957%2F8e1c7279-ed27-4c03-b189-ceeee26bbb12

Attend the Idealease Safety Seminar at Peterson

The Idealease Safety Seminar is open to customers of Peterson. The seminar will cover the changes to the On-Highway regulations affecting the Trucking Industry. Seating is limited, please RSVP to pabackers@petersontrucks.com.

Time: April 19, 2012, 8am to 5pm
Location: Peterson University
Street: 2700 Teagarden Street
City/Town: San Leandro, CA

Vehicle Shortage Could Limit Growth for Trucking Operations

While the economy seems to be turning around for the trucking industry (most sources estimate that tonnage is again approaching the same levels as those seen in 2006), future growth may be limited for many trucking operations as the industry rebounds from economic crisis that began in 2007. Reports of driver shortages from organizations such as the American Trucking Association have been making headlines for months, but now industry economists warn that equipment shortages may accompany personnel shortages as shipping demands increase, according to an article published in American Shipper.

During the economic downturn, demand for new trucks dropped significantly. Operations needing to adjust for dwindling shipping demands reduced fleet sizes, which lead to more used trucks on the market for those looking to buy; the replacement of old equipment with new was indefinitely postponed by many operations; countless small carriers went out of business; and more stringent emissions and maintenance regulations increased costs of operation. While demand for new trucks has increased since the worst of the downturn, manufacturers are still hesitant to increase production due to the unpredictability of the current market.

At the present time, industry economists estimate that supply and demand for new commercial vehicles are at an equilibrium; however, any improvement in the economy could quickly lead to a truck shortage.

To read more on this subject, visit:

http://americanshipper.com/Main/News/Where_did_all_the_trucks_go_47394.aspx