Key Currency Exchange Rates for Friday, 1/5/24

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index contracted 1% in May after falling 10.3% in April. In May, the index equaled 106.1 (2015=100) compared with 107.2 in April. “While tonnage fell in May, even though other economic indicators like retail sales and housing starts rose, I’m not overly concerned,” said ATA Chief Economist Bob Costello. “First, while down over 10 percent sequentially in April, truck tonnage did not fall as much as other economic indicators that month. This means that any rebound is tougher since tonnage didn’t fall substantially to begin with. Second, there are indications that freight continues to improve as more and more states and localities lift lockdown restrictions.” April’s drop was revised up to -10.3% from the 12.2% decline reported in our May 19 press release.

A group of transportation and trucking stakeholders is calling on Congress to repeal the Federal Excise Tax (FET) on heavy-duty commercial vehicles. This century-old tax is impeding the deployment of cleaner, more environmentally friendly trucks on our nation's roads, according to a letter from the American Trucking Associations, American Truck Dealers, and Zero Emission Transportation Association sent to Congressional leadership. The heavy-duty excise tax was established in 1917 to defray the costs of World War I and today adds 12% to the cost of a new truck, creating a major disincentive for trucking fleets small and large to modernize their equipment and replace older tractors with new, low-emission power units. The FET can add more than $50,000 to the price of the latest low- or zero-emission vehicle, making these investments cost-prohibitive for smaller fleets. Over 90% of U.S. motor carriers operate six or fewer trucks. “If Congress is serious about safety, the environment and jobs, then repealing the FET should be front-burner," said ATA President and CEO Chris Spear. "It’s time to shelve this World War I era tax and starting putting the best equipment on our roads.”

India’s imports of African crude oil in October plunged to their lowest in over four years, with the world’s No.3 oil consumer increasingly turning to cheaper supplies from the United States and heavier Middle Eastern grades, ship tracking data showed. U.S. crude production has soared more than 14 percent since mid-2016 to 9.65 million barrels per day (bpd), altering trade routes as its relatively cheap and light grades become a viable import option for Asian refiners. “Earlier in Asia, West African oil was competing with Middle East grades, but now it has a new competitor: the U.S.,” said Ehsan Ul-Haq, director of crude oil and refined products at consultancy Resource Economist. Click Read More below for additional information.