U.S. Bank Freight Payment Index: Shipments, Spending Drop by Sharpest Amount Since Beginning of Pandemic
- Truck shipments in the US declined by 9% in the second quarter of 2023.
- The Northeast region experienced the largest drop in volume, with a 27.1% decrease year-over-year.
- Shippers' spending dropped by 10.9% compared to the second quarter of 2022.
- Trucking is facing a significant slowdown due to weaker consumer demand for goods, slowdown in manufacturing activity, and housing starts.
- Nationwide shipment levels have decreased for five consecutive quarters.
- The Midwest region had the sharpest spending drop in the second quarter, with an 18.7% decrease year-over-year.
In second quarter, truck shipments fall
“Trucking is in the midst of a significant slowdown,” said Bob Costello, senior vice president and chief economist at the American Trucking Associations. “Weaker consumer demand for goods and a slowdown in manufacturing activity and housing starts are having a major impact on the industry – especially carrier operations.”
Nationwide shipment levels have now decreased for five consecutive quarters. In the second quarter, volume dropped most in the Northeast (
Truck freight spending levels have now contracted year-over-year for two consecutive quarters. With spending at all-time high levels for the preceding six quarters, the recent drops brought spend activity back to its relatively strong levels of mid-2021.
The Midwest region had the sharpest spending drop in the second quarter,
“In the spot market, we’ve been observing for a while sharp spending drops caused by lower volumes and increased capacity. This trend has now solidly penetrated the contract freight market,” said Bobby Holland, director of freight business analytics,
Regional Data
West
Shipments
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Spending
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Truck freight continued to struggle in the West region as port activity and housing starts there continued to slow. This is the lowest point for shipments in the West in three years.
Southwest
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Continuing to outperform other regions, Southwest volume is benefiting from increased truck-transported trade with
Midwest
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Continued slowdowns in manufacturing likely led to year-over-year shipments dropping by the largest level in the region since Q4 2021. Yearly spending also dropped by the largest amount since Q2 2020.
Northeast
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The
Southeast
Shipments
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Spending
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Even though shipments contracted
To see the full report including in-depth regional data, visit the
About
U.S. Bancorp, with approximately 77,000 employees and
View source version on businesswire.com: https://www.businesswire.com/news/home/20230801338184/en/
Aili Jokela,
Aili.Jokela@usbank.com | 503-464-4923
Source: U.S. Bancorp
FAQ
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