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Dive Brief:
- The federal government’s producer price index for general transportation, long-distance TL fell in May, down 2.9% year after year.
- But the percentage change showed that the decline in prices could be slowing. Year-over-year declines in the first five months of the year continued to moderate, according to data from the Bureau of Labor Statistics.
- The American Trucking Associations warned recently The positive developments in May have yet to translate into significant market progress.
It decreases from year to year PPI truck crude in 2024
Month | TL PPI | Percentage change on an annual basis |
---|---|---|
May | 171,986 | -2.9% |
April | 174.136 | -4.6% |
March | 173,176 | -7.9% |
February | 175,045 | -9.5% |
January | 172.009 | -14% |
SOURCE: BLS
Dive Insight:
While percentage changes in this sector remained negative, the latest monthly figures suggest further stability.
However, despite positive developments such as the May payrolls data, market challenges remain and FTR expects its own Truck Conditions Index to remain negative throughout 2024, according to the forecast firm he said in a report.
“We still don’t expect consistently favorable market conditions for carriers until early next year,” Avery Vise, FTR’s vice president of trucking, said in the report.
Although the ATA’s capacity index showed improvement in May, Bob Costello, the association’s chief economist, is also uncertain whether market conditions are improving.
“While there was clearly an increase in fares ahead of the Memorial Day holiday, it is still too early to tell if this is the beginning of a long-awaited recovery in the truckload market,” he said in a monthly report.