Tonnage Jumps 8% in Oct.

Monthly Gain is Highest Since December 2011
By Seth Clevenger, Staff Reporter

This story appears in the Nov. 25 print edition of Transport Topics.

U.S. truck tonnage rose 8% in October from a year earlier, even though it fell short of the all-time high recorded in the previous month, American Trucking Associations reported.

鈥淲e鈥檝e seen some things in trucking recently that show that perhaps the economy is a little stronger than we think,鈥 said Bob Costello, ATA鈥檚 chief economist.

On a month-to-month basis, ATA鈥檚 seasonally adjusted freight index slipped 2.8% to a reading of 124, down from 127.5 set in September. September鈥檚 total still was a record despite being revised lower from 128.7.



ATA鈥檚 revised September index lowered that month鈥檚 year-over-year gain to 7.4% from 8.4%. The index uses freight levels during 2000 as a base level of 100.

October鈥檚 year-over-year gain was the largest since December 2011, ATA said in its Nov. 19 report.

Through 10 months, tonnage levels for 2013 are up 5.5% from the same period last year.

ATA鈥檚 Costello said, 鈥淭onnage has been good for a while now,鈥 recalling that, in the third quarter, the dry-van sector posted its best growth rate for loads delivered since the second quarter of 2010.

But Costello described October as a 鈥渕ixed bag,鈥 with tonnage remaining at a 鈥済ood鈥 level despite the sequential decline.

He said the federal government鈥檚 partial shutdown in early October 鈥渃learly must have had some negative impact鈥 on tonnage, but added that it鈥檚 difficult to determine how much of the month-to-month downturn could be attributed to it.

The strong year-over-year growth reflected an easy comparison with a down month in October 2012, Costello said. Superstorm Sandy struck the East Coast at the tail end of last October.

Steve O鈥橩ane, president of regional less-than-truckload carrier A. Duie Pyle Cos., said his company鈥檚 business volumes in October were 鈥渞eally good.鈥

In fact, October was the company鈥檚 best month for year-over-year tonnage growth so far in 2013, even after removing the tonnage losses associated with Sandy in the final days of October 2012.

鈥淥verall, there鈥檚 been some slow economic growth that鈥檚 helped tonnage,鈥 O鈥橩ane said. 鈥淚鈥檇 like to think that maybe we had a little bit of a market-share gain as well. Putting those two things together has made us pretty busy.鈥

O鈥橩ane said he sees 2013 as a 鈥済ood but unspectacular year鈥 and predicted more sustainable, slow growth in 2014.

A. Duie Pyle, based in West Chester, Pa., ranks No. 85 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.

Hogland Transfer Co. in Everett, Wash., has experienced high freight demand all year, including a 鈥渟trong鈥 month in October, said Steve Holtgeerts, the company鈥檚 president.

鈥淥ur business is heavily influenced by a couple of key customers in the manufacturing sector that are increasing output, so we鈥檝e benefited from them,鈥 he said. 鈥淚t鈥檚 been a good year. It has the possibility of being a record year.鈥

At the same time, capacity has tightened at the local truckload and LTL carrier. 鈥淲e鈥檙e probably declining more business than we ever have, just because it doesn鈥檛 fit our lanes or we just don鈥檛 have additional capacity to take it on for certain days of the week,鈥 Holtgeerts said.

Mike Habeck, president of Habeck Trucking Inc. in Belle Fourche, S.D., said his company also is running at full capacity.

Habeck鈥檚 customers have more freight than the carrier can cover with its 30 trucks.

鈥淲e certainly don鈥檛 have to go out looking for anything,鈥 he said.

The company would haul more freight if it had more trucks, but 鈥渢he biggest problem we have here is trying to find qualified drivers,鈥 Habeck said.

Freight demand in 2013 has been up 鈥渁 little bit鈥 compared with 2012, he added.

ATA鈥檚 Costello said tonnage continues to outperform other measures of truck freight, including the number of loads and the amount of miles. That鈥檚 because the parts of the economy that are growing the most 鈥 home construction, hydraulic fracturing and auto production 鈥 happen to generate heavy freight, he said.

Meanwhile, load-board freight volume jumped 24% in October to a record high for that month, according to DAT, a load board owned by TransCore.

Last month鈥檚 activity also increased 1.9% from September, according to DAT鈥檚 North American freight index, which is not seasonally adjusted.

Spot-market activity usually declines beginning in the summer, but this year, freight has remained at an elevated level in the second half.

鈥淚t鈥檚 been a fairly exceptional period over the past three or four months, because typically you see a seasonal decline which we just haven鈥檛 seen,鈥 said David Schrader, senior vice president of operations for TransCore.

October dry-van freight volumes rose 4.4% year-over-year, while refrigerated loads climbed 22% and flatbed freight jumped 24%.

Schrader said flatbed freight has benefited from strength in the energy and auto industries, while reefer freight has been bolstered by a good year for agriculture.