The Freight Transportation Services Index (TSI), which is based on the amount of freight carried by the for-hire transportation industry, reached an all-time high, rising 1.4 percent in July from June, after a one-month decline, according to the US Department of Transportation’s Bureau of Transportation Statistics (BTS). The July 2017 index level (128.2) was 35.4 percent above the April 2009 low during the most recent recession.
The level of for-hire freight shipments in July measured by the Freight TSI (128.2) reached its all-time high, 0.7 percent above the previous high reached in May (127.3). July was the third month in 2017 in which the freight index reached an all-time high. During the first seven months of 2017, the freight index averaged 2.9 percent higher than the first seven months of 2016.
The Freight TSI measures the month-to-month changes in for-hire freight shipments by mode of transportation in tons and ton-miles, which are combined into one index. The index measures the output of the for-hire freight transportation industry and consists of data from for-hire trucking, rail, inland waterways, pipelines and air freight.
The July increase in the Freight TSI was driven by gains in trucking, pipeline and water, while rail carloads decreased and air freight and rail intermodal were stable. The increase took place against a background of growth in several other indicators in July. Employment and Personal Income both increased, while the Federal Reserve Board Industrial Production index grew by 0.4 percent, with gains in mining and utilities even as the manufacturing index was down. The Institute for Supply Management’s Purchasing Managers’ Index showed positive but slowing growth. However, housing starts declined in July.