BTS reports Freight TSI sets a new record

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) headed up 1.4% from July to August, the most recent month for which data is available, setting a new all-time high for the second consecutive month.

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 airfreight.

August’s Freight TSI reading, at 140.6, came on the heels of July’s 139.0, which snapped two months of declines, with May and June down 0.1% and 0.3%, respectively. The previous record before July was 138.7 (which was downwardly revised from an initial reading of 139.0), which was recorded in November 2018.

On an annual basis, the August Freight TSI saw a 4.1% gain, which was down from a 5.5% annual gain from August 2017 to August 2018. And BTS said that for-hire freight shipments in August were up 48.3% compared to the record low reading from April 2009.

BTS said that August’s record-high reading was reached despite the Freight TSI having only seen growth in five of nine months going back to November 2018.

“The August Freight TSI increase was broad based, with increases in all sectors except the rail components – carloads and intermodal,” said BTS. “The TSI increase took place against a background of mixed results for other indicators. The Federal Reserve Board Industrial Production Index grew in August, with increases in mining, manufacturing and utilities. Personal income increased by 0.4%, while housing starts grew by 12.3%. The Institute for Supply Management Manufacturing index decreased 2.1 points to 49.1, indicating contraction in the manufacturing sector.”