U.S. Bank Freight Payment Index™ Benchmarks State of Shipping Industry
October 19 2017 - 11:51AM
Business Wire
New quarterly analysis of national and regional
freight activity is trending up
U.S. Bank has launched a new barometer for assessing the
nation’s shipping industry. The U.S. Bank Freight Payment Index™
measures quantitative changes in shipment and spend activity, based
on data from transactions processed through U.S. Bank Freight
Payment. These transactions are made on behalf of clients across a
range of industries, including automotive, manufacturing, food and
retail. Published quarterly, the U.S. Bank Freight Payment Index
includes regional and national breakdowns along with expert
commentary from Bob Costello, chief economist for the American
Trucking Associations (ATA).
Highlights and analysis of the U.S. Bank Freight Payment Index
for the third quarter include:
- An 8.3 percent jump in the U.S. Bank
National Spend Index, the largest quarterly gain since the final
quarter in 2014, reflects a tighter truck market, in part from
increased vehicle demand in the aftermath of Hurricanes Harvey and
Irma.
- The U.S. Bank National Shipment Index
increased 3.3 percent, which was slower than the 5.8 percent surge
in the second quarter, but still solid, considering the impacts
from the hurricanes.
- One of the most important developments
for the transportation sector has been the acceleration in factory
output as the U.S. dollar retreated from high levels and businesses
began reinvesting in capital equipment.
A unique feature of the index is that it breaks the data down
into five U.S. regions – West, Southwest, Midwest, Southeast and
Northeast -- based on the state of origin for a shipment. “Freight
shipments are generally not uniform across the country,” said
Costello. “That’s what makes the U.S. Bank Freight Payment Index so
useful. It is regional and gives a good snapshot into the
differences in economic climate from one end of the country to the
other.”
Regional highlights and analysis for the third quarter
include:
- The Northeast region saw the biggest
shipment index gain, at 10 percent. The gain was helped along by
better manufacturing activity and slightly higher housing starts
compared to Q2.
- Shipments in the Southeast inched up a
mere 0.1 percent, as Hurricane Irma disrupted the supply chain. At
the same time, spend volume jumped nearly 5 percent as truck
capacity undoubtedly tightened.
- The Midwest led the pack in overall
spend, jumping 13.3 percent to a record high. The region was
assisted by a rebound in general manufacturing activity.
“With U.S. Bank and its customers increasingly relying on big
data to discover opportunities and make decisions, leveraging our
robust data to assist our clients with these insights made a lot of
sense,” said U.S. Bank Global Transportation General Manager John
Hardin. “The relative changes in the U.S. Bank Freight Payment
Index indicate trends in the transportation industry and the
overall economy, which can be helpful to customers in benchmarking
their performance.”
Though the U.S. Bank Freight Payment Index is new, its
aggregated data goes back to 2010, allowing readers a sense of
trend lines over time. Access to the full October quarterly report
is available online at this link.
A pioneer in automated freight audit and payment for 20 years,
U.S. Bank Freight Payment processes around $23 billion in global
freight payments annually for some of the world’s largest
corporations and government agencies. Through its comprehensive
online solution, organizations can streamline and automate their
freight audit and payment processes while obtaining the business
intelligence needed to maintain a competitive supply chain. U.S.
Bank Freight Payment combines transportation, logistics and supply
chain expertise with the backing of one of the world’s leading
payment providers and the security of one of the world’s most
respected financial institutions.
©2017 U.S. Bank
About U.S. Bank (www.usbank.com)Minneapolis-based U.S.
Bancorp (NYSE: USB), with $459 billion in assets as of September
30, 2017, is the parent company of U.S. Bank National Association,
the fifth largest commercial bank in the United States. The Company
operates 3,072 banking offices in 25 states and 4,801 ATMs and
provides a comprehensive line of banking, investment, mortgage,
trust and payment services products to consumers, businesses and
institutions.
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Bill Brady | U.S. Bank Corporate
Communications612-303-0731(o) | 651-728-2248
(m)bill.brady@usbank.comorDeborah Harris | William Mills
Agency678-781-7220 | deborah@williammills.com
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