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Released: January 2, 2008
Truck Tonnage Grew in November
Truck tonnage in November increased 3.3% from a year ago, according to American Trucking Associations’ seasonally adjusted for-hire truck tonnage index. This increase followed a 1.5% year-to-year drop October, according to the ATA. The index rose 0.8% from October’s reading, following a 0.2% contraction in October. The November index’s reading was 112, and year-to-date, the index was 1.7% lower than the first 11 months of 2006. The not seasonally adjusted index fell 8.5% from October, to a 111.8 reading, ATA said. ATA Economist Tavio Headley said the reading suggests continued volatility and softness in freight volumes, despite the gains. He noted that every monthly increase in the seasonally adjusted tonnage index since March was followed by a contraction the next month, and that the slowdown in tonnage is projected to continue into 2008. “Based on the latest economic data and the expected slowdown in the economy over the next few quarters, we anticipate lackluster freight volumes at least through the first half of 2008,” Headley said. ATA calculates the tonnage each month based on reports by its member trucking companies.
Rail Traffic Decreases
Rail traffic in the latter part of December fell 2.6 percent compared with the same week a year ago, according to the Association of American Railroads. Intermodal volume decreased 1.8 percent to 229,695 trailers and containers in the week ending Dec. 22. Container volume declined 2.3 percent during the week. Trailers fell slightly, at 0.2 percent. For the full 51-week period, overall intermodal traffic was down 2 percent compared with 2006. Volumes of most major carload commodities increased during the week. Grain surged 25 percent. Chemicals pumped up a 12.9 percent gain. Food and metals both saw 7 percent growth. Coal, the largest commodity by volume, grew just 1.1 percent. Significant declines were limited to forest products, down 18.3 percent, and automotive vehicles, down 6.1 percent.
FMCSA Moves Forward With Cross-Border Program
The Federal Motor Carrier Safety Administration will move forward with its cross-border demonstration project despite legislation widely understood to cut off funding. "The current cross-border trucking demonstration project, established in September, will continue to operate," the FMCSA confirmed in a statement. On Dec. 26, President Bush signed into law H.R. 2764, an omnibus spending bill that provides funds for multiple areas of government activity, including FMCSA's Mexican truck program. The bill specifically stated that none of the funds appropriated could be used "to establish a cross-border motor carrier demonstration program." The legislation was widely hailed as the end of the program. Labor and environmental groups, along with a majority of members of Congress, had opposed it. "We expect the Bush administration to obey the law and put a stop to this dangerous program as soon as it is signed into law," said James P. Hoffa, Teamsters General President. On Dec. 27, FMCSA announced that it had notified an additional 37 Mexico-domiciled motor carriers that they have successfully passed a Pre-Authorization Safety Audit. The process has not been interrupted. When he signed the legislation, President Bush said: "This legislation contains certain provisions similar to those found in prior appropriations bills passed by the Congress that might be construed to be inconsistent with my Constitutional responsibilities. To avoid such potential infirmities, the executive branch will interpret and construe such provisions in the same manner as I have previously stated in regard to similar provisions." The interpretation offered by FMCSA is that no new programs can be established but that the current one is unaffected.
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