The American Trucking Associations (ATA) reported this week that its seasonally-adjusted for-hire Truck Tonnage index declined 1.8 percent in October.

This monthly figure comes on the heels of a 1.6 percent increase in September, with October’s tonnage index coming in at 110.8 and September’s tonnage index at 112.9. The ATA said that October’s index was the lowest it has been since the end of the first quarter of this year, when it dropped 3.3 percent and the index fell to 111.6.

The ATA also noted that the Truck Tonnage index was down 4.0 percent compared to October 2005, representing the largest year-over-year decrease since February 2001. On a year-to-date basis, the index is down 2.1 percent compared to the same timeframe a year ago.

ATA chief economist and vice president Bob Costello told Logistics Management that because the index focuses on how much carriers hauled-as opposed to what they hauled, it can be difficult to pinpoint a specific reason for the recent decline in tonnage. But he did mention that weaker economic growth figures for the housing and automotive markets, as well as retails sales and industrial production weighed into the tonnage decline.

Monthly tonnage was weaker than expected, but Costello points out it is important to note that year-over-year comparisons very difficult due to the amount of freight generated in October 2005 from the hurricanes.”

Going forward, Costello said, it is reasonable to expect the rest of this year and next year to be somewhat below average, in terms of growth.

“With the economy slowing down, I think 2007 will be below trend year for trucking just like the overall economy…not necessarily big decreases, just smaller increases mixed with decreases. Trucking typically sees slowdowns and increases before they show up in GDP figures, so that is why we are having stops and starts in tonnage.”

The ATA’s monthly tonnage index is based on membership surveys and includes month-to-month and year-over-year results, relevant economic comparisons, and key financial indicators.