Dive Brief:
- The federal government’s producer price index for general freight, long-distance TL slipped in May, dropping 2.9% year over year.
- But the percent change showed a drop in prices could be decelerating; YoY declines throughout the first five months of the year have continued to moderate, per Bureau of Labor Statistics data.
- The American Trucking Associations recently warned positive developments in May have yet to prove a significant breakthrough in the market.
Year-over-year drops in PPI truckload slow in 2024
| Month | TL PPI | YoY percent change |
|---|---|---|
| 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 percent changes in this area have remained negative, the most recent monthly data suggested further stability.
But despite positive changes, such as May payroll jobs figures, market challenges still persist, and FTR expects its own trucking conditions index to remain negative throughout 2024, the forecasting firm said in a report.
“We still do not expect consistently favorable market conditions for carriers until early next year,” Avery Vise, FTR’s VP of trucking, said in the report.
Though ATA’s tonnage index showed improvement in May, Bob Costello, the association’s chief economist, also is uncertain whether market conditions are improving.
“While there was clearly an increase in freight before the Memorial Day holiday, it is still too early to say whether this is the start of a long-awaited recovery in the truck freight market,” he said in a monthly report.
