The American Trucking Associations’ advanced seasonally adjusted For-Hire Truck Tonnage Index increased 1.7 percent in November, marking the first month-to-month improvement since June 2008. The index contracted a total of 6.3 percent from June through October. In November, the seasonally adjusted tonnage index equaled 110.7 (2000 = 100). In October, the index was at the lowest level in five years.

Despite the increase in the seasonally adjusted measure, the freight outlook remains bleak. Specifically, the not seasonally adjusted index, which measures the change in actual tonnage volumes reported by the fleets before any seasonal adjustments, fell 15.4 percent to 101.3 in November.

The seasonally adjusted index declined 1.8 percent compared with November 2007, which was the second straight year-over-year decrease.

ATA Chief Economist Bob Costello cautioned against misinterpreting the slight increase in freight tonnage as indicative of the beginnings of an economic turnaround. Freight volumes remain weak, he said. “Don’t let November’s increase in the seasonally adjusted index fool you,” said Costello. “Freight volumes were down substantially before any seasonality is taken out of the data,” Costello added. Tonnage was also off from year-over levels showing the weakness in freight. Costello said he expects freight to further weaken as the economy contracts through the first half of 2009.

source [ATA]

One of the largest private companines in America, with sales in 2007 that exceeded $16 billion dollars, just filed today for Chapter 11. Flying J which employs over 16,000 people in the US and Canada have been hit  very hard by the quick decline in oil prices.

FLYING J FILES TO REORGANIZE UNDER CHAPTER 11
All Operations Are Open and Conducting Business As Usual Filing Will Allow Company to Address Near-Term Liquidity Pressures
Ogden, UT, December 22, 2008 – Flying J Inc. today announced that the Company and certain of its subsidiaries have filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Delaware. The filing will allow the Company to address near-term liquidity needs brought about by the precipitous decline in oil prices coupled with the disruption in the credit markets.

All of Flying J’s operations, including approximately 250 travel plazas and fuel stops, are open and serving customers in the normal course. The Company plans to continue normal business operations as it moves through the reorganization process. 

For full press release click here.

source [flyingj.com]

Oil was steady early Friday after closing Thursday below $37 a barrel on the New York Mercantile Exchange, the first time it closed below $40 in more than four years, Bloomberg reported.

Crude futures fell $3.84 Thursday to close at $36.22 on the Nymex, and the continuing decline showed that OPEC’s decision Wednesday to cut production volumes by 2.2 million had little immediate effect on prices, Bloomberg said.

Oil closed at a record $145.18 a barrel on July 14, and has fallen steadily since then.
 
[Source Transport Topics]