The Freight TSI represents the quantity of freight handled by the for-hire transportation industry. The May figure of 137.6 is 2.5 per cent lower than the all-time high of 141.2 set in August 2019. However, it is 44.8 per cent above the recession low of April 2009, when it stood at 95.0, the United States Department of Transportation said in a press release.

The April index was revised up slightly to 136.0 but is still lower than the March reading. Passenger and combined indexes for May are due to be released next month.

The Freight TSI encapsulates the monthly changes in for-hire freight shipments across different transport modes, amalgamating them into one index. It adjusts for regular seasonal trends, enabling comparisons between different months.

The May rise is attributed to seasonally adjusted increases in air freight, water, pipeline, rail intermodal, and trucking, despite a decrease in rail carloads. This increase occurred against the backdrop of mixed results for other metrics. For instance, the Federal Reserve Board Industrial Production (IP) Index declined by 0.2 per cent in May, reflecting downturns in mining and utilities, while manufacturing saw a slight increase.

Conversely, the Institute for Supply Management Manufacturing (ISM) index fell slightly to 46.9, signalling a decrease in manufacturing. Looking at the long-term trend, for-hire freight shipments have risen by 0.8 per cent in the five years from May 2018 and 18.6 per cent over the ten years from May 2013.

Despite the challenges posed by COVID-19, the Passenger TSI has exceeded its March 2020 level— the pandemic’s inaugural month—for 23 consecutive months, although it still lags behind its pre-pandemic level of February 2020 for the 38th consecutive month.

The freight index trend showed a rebound in May after two successive months of decline, leaving it 1.5 per cent below the February figure. It was only the second rise in the last nine months, representing an overall decrease of 2.4 per cent since August 2022.

Notably, the May Freight TSI is 10.9 per cent higher than the pandemic low in April 2020. The index is currently 2.5 per cent lower than its record high in August 2019, despite showing an increase in 21 out of the 45 months since that peak.

Fibre2Fashion News Desk (NB)