Weak Freight Demand Reflected in a Material Decline in the Price of Diesel

Jun 5, 2023 | Macro Insights, No Bull Economics

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The goods portion of the economy is soft, and as a result, contract truck freight is now falling according to the American Trucking Association.

Commentary

  • The ATA’s tonnage index hit the lowest level since September 2021 in April 2023 after falling on a y/y basis for 2 straight months.
ATA Truck Tonnage Index Graph

Source: ATA Truck Tonnage Index Decreased 1.7% in April | American Trucking Associations

  • Lower shipping demand is translating into lower freight costs which, in turn, is driving lower product cost inflation & diesel prices (further helping freight costs).  
US Diesel Prices and Producer Price Index Graph
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