Truck Tonnage Index

What Is the Truck Tonnage Index?

The truck tonnage index is an index that measures the gross tonnage of freight which is shipped by motor transporters in the United States for a given month. The index fills in as an indicator of delivery activity, and consumption of goods in the U.S. Analysts likewise utilize the truck tonnage index to decide the state of the U.S. economy as more than 70% of all freight tonnage is through truck.

Understanding the Truck Tonnage Index

The index is weighted proportionately to mirror the current organization of the trucking industry. Calculation of the index utilizes a seasonal adjustment, and there is a one-month lag between the hour of data gathering and reporting. A rise in the index is generally viewed as a rise in the economy, since it demonstrates that production is up, as well as of consumption of consumer goods.

The truck tonnage index was first presented by the American Trucking Association (ATA) in 1973. ATA, shaped in 1933, is an advocacy group for the trucking industry. The association means to teach both the public and policymakers about the significance of the trucking industry's job in the economy. In arriving at the goal of the ATA, the index has proven to be a significant device. Both raw materials and consumer goods for retail sales are delivered locally by means of truck.

Truck Tonnage Still Rolling Strong

The Federal Reserve Bank of St. Louis keeps a chart of the truck tonnage index on their website. In 2019, 11.84 billion tons of freight were transported inside the U.S. by truck. This aggregate sum addresses $791.7 billion in gross freight revenues from trucking alone.

Past the revenue created by trucking, the industry likewise adds to the economy through payment of federal and state parkway client taxes. In 2018, these taxes amounted to $45.7 billion. The ATA gauges that there are over 3.6 million truck drivers in the U.S. iin 2019 adding to these numbers.

In March 2018, the truck tonnage index read at 112.5. After a year the index came to 116.7. It kept on ascending until August 2019 before dipping in 2020. In April 2020 it had dropped to 106.9.