BTS reports Freight TSI drops for second straight month

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) saw a 0.4 percent decline from November to December, its second straight decline on the heels of a 1.0 percent decrease from October to November.

According to BTS officials, the Freight TSI measures the month-to-month changes in freight shipments in ton-miles, which are then 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 December Freight TSI at 121.0 was 2.3 percent below the all-time high of 123.8 from November 2014 and is 27.8 percent above the recent low of 94.7 recorded in April 2009.

BTS noted that the December Freight TSI’s decline was broad from a modal perspective, with all freight modes down except for trucking, which saw a slight increase.

The decrease was driven by weakness in the mining (including oil and gas well drilling and servicing), utility and manufacturing sectors of the economy, said BTS, adding that the Federal Reserve Board Industrial Production index declined 0.4 percent in December while the ISM Manufacturing Index was below 50, indicating declining manufacturing activity. Housing starts were also below the November level.

On a quarterly basis, the fourth quarter Freight TSI was down 1.2 percent compared to the third quarter.