U.S. Bank Freight Payment Index™ Shows Spend Surging, Shipments Easing in Q4
January 24 2018 - 4:01PM
Business Wire
Spending up across all regions; shipments
strong in Southwest, weak in Midwest
The U.S. Bank Freight Payment Index™ showed gains in both
spending and shipments during the fourth quarter of 2017, but the
scope of the advances differed widely. Spending for trucking
services advanced by the highest rates so far this decade,
reflecting solid demand coupled with tighter capacity due to driver
shortages and new regulations. Shipments, on the other hand,
increased by the smallest amount of any quarter in 2017, fitting
with expected economic output deceleration during the final quarter
of the year.
“The growth in shipments for the fourth quarter was solid, just
not quite the torrid pace of the previous two quarters,” said
American Trucking Associations Chief Economist Bob Costello, who
provides quarterly analysis and expert commentary on the index
results. “This matches with the broader economic picture, where
gross domestic product is expected to show a slowing down for Q4.
The concurrent strength in spending can be traced in part to solid
demand, but also to a driver shortage accentuated by the new
federal requirement that trucks be equipped with electronic logging
devices, or ELDs, to track driver hours-of-service, which took
effect in December.”
Highlights and analysis of the U.S. Bank Freight Payment Index
for the fourth quarter of 2017 include:
- The National Spending Index jumped 12.5
percent from the third quarter and 24.8 percent over the same
quarter a year earlier. The two gains were both records for the
index dating back to 2010.
- The National Shipments Index increased
just 1.6 percent during the quarter, significantly below the 5.8
percent and 3.3 percent gains of the second and third quarters,
respectively. Still, it was the best for fourth quarter of any year
since 2014, and notably better than Q4 2016, when the index fell 4
percent.
- Truck shipments were quite mixed by
region during the quarter, ranging from a drop of 1.4 percent in
the Midwest to a surge of 9.1 percent in the Southwest.
- All regions saw double-digit gains in
spending, the largest jump coming in the Northeast (16 percent) and
the smallest being the Southeast (just under 11 percent).
The quarterly 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.
A pioneer in automated freight audit and payment for more than
18 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.
©2018 U.S. Bank
About U.S. Bank (www.usbank.com)
Minneapolis-based U.S. Bancorp (NYSE: USB), with $462 billion in
assets as of December 31, 2017, is the parent company of U.S. Bank
National Association, the fifth largest commercial bank in the
United States. The Company operates 3,067 banking offices in 25
states and 4,771 ATMs and provides a comprehensive line of banking,
investment, mortgage, trust and payment services products to
consumers, businesses and institutions.
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U.S. Bank Corporate CommunicationsBill
Brady612-303-0731(o) | 651-728-2248
(m)bill.brady@usbank.comorWilliam Mills AgencyDeborah
Harris, 678-781-7220deborah@williammills.com
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