U.S. trucking sector's recovery continues to gain momentum despite a noticeable drop in truck tonnage in January, says Five Star Equities
March 13, 2012
– Despite a noticeable drop in truck tonnage in January, the U.S. trucking sector's recovery continues to gain momentum. According to the American Trucking Association's Chief Economist, Bob Costello, he is "optimistic about truck tonnage going forward... In fact, while many fleets said January was normal, they are also saying that February has been pretty good so far." Five Star Equities examines the outlook for companies in the trucking industry and provides equity research on YRC Worldwide, Inc. (NASDAQ: YRCW - News) and Arkansas Best Corporation (NASDAQ: ABFS - News). Access to the full company reports can be found at:
In late February the American Trucking Association (ATA) reported that its advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index fell 4.0% in January after surging 6.4% in December 2011. "Last month I said I was surprised by the size of the gain in December... I'm not surprised that tonnage fell on a seasonally adjusted basis in January simply due to the fact that December was so strong," ATA Chief Economist Bob Costello said. Costello noted that December's increase was the largest month-to-month gain since January 2005.
For all of 2011, tonnage rose 5.8%, slightly lower than the 5.9% previously reported, and matched 2010's gain of the same magnitude. The index increased 3.6% from January 2011.
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Earlier this month YRC Worldwide Inc. announced the company has agreed to sell its interest in Shanghai Jiayu Logistics Co., Ltd. to its 35-percent joint venture partner. "This is another important step in the continuing process to sharpen our focus on North American less-than-truckload (LTL) shipping. Our emphasis on core LTL services has resulted in significant increases in on-time service and our customers are responding very favorably," said James Welch, chief executive officer of YRC Worldwide.
Arkansas Best Corporation, through its subsidiaries, engages in motor carrier freight transportation in the United States.
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