Freight demand may continue to improve in 2017 because of strong retail sales, larger wage gains and a solid housing market, according to Bob Costello, ATA’s Chief Economist.
American Trucking Association’s Chief Economist Bob Costello blames a 5.8 percent decline in truck tonnage on a soft freight market. Net trailer orders last month plunged 66 percent from the same period in 2015.
Economists and analysts blame the trucking industry slump on an inventory glut and hesitant consumers, coupled with tightening trucking regulations.
Orders for large trucks fell 57 percent year-over-year as trucking companies hold off on purchases because shipping and freight demand is falling.
There are more large trucks on the road traveling more miles and transporting more cargo. However, there are also more crashes involving trucks and it’s costing more money, according to the FMCSA.
The decrease in the truck tonnage index comes after a record high in February, the American Trucking Associations reported.