Freight TSI sees mild growth in February, reports BTS

The United States Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that its Freight Transportation Services Index (TSI) saw a slight increase in February, the most recent month for which data is available, rising 0.2% from January’s 136.9 (which was downwardly revised from an original reading of 137.4).

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.

This marks the second consecutive month of growth, with the February reading at 137.2, and it is up 0.1% annually. This is down from annual February spreads of 2.6% in February 2019 and 7.2% in 2018. And February was down 2.8% compared to the all-time high reading of 141.2, which was recorded during August 2019, and 44.6% higher than the low in April 2009, of 94.9.

“The Freight TSI grew in February from January due to growth in air freight and significant growth in pipeline, and despite declines in rail carload, rail intermodal and water, and no change in trucking,” BTS said. “The TSI increase took place against a background of mixed results in other indicators. The Federal Reserve Board Industrial Production (IP) Index increased 0.6% in February reflecting increases in utilities and manufacturing and a decrease in mining. Personal Income grew by 0.6% while housing starts decreased by 1.5%. The Institute for Supply Management Manufacturing (ISM) index was down by 0.8 point to 50.1, indicating slower growth in the manufacturing sector. The ISM manufacturing index is based on a survey of 800 supply chain executives on production, orders, deliveries, and employment, while the Federal Reserve IP index is based on estimated physical output using a range of output measures that the Federal Reserve considers reliable. Comparisons between patterns in the ISM manufacturing and the Federal Reserve IP index should be done with caution.”

BTS said the reading is up 0.4% since the start of 2020 but still has not surpassed the levels it has had in all months but one between September 2018 and November 2019, however, it remained above any level it had reached before September 2018 and has been essentially stable (declining by 0.5%) since then.