U.S. Bank Freight Payment Index: Truck Freight Volume Continues to Contract Nationwide Despite Major Increases in Southwest U.S.
May 01 2023 - 9:00AM
Business Wire
First quarter shipments down 6.1% nationwide
while spending increased in all regions except the Midwest
The volume of freight shipments moved via truck declined in the
first quarter of 2023 by 6.1% year-over-year, according to the
latest U.S. Bank Freight Payment Index.
This was the fourth quarter in a row where volume has contracted
on an annual basis. The drop was most intense in the Southeast,
West and Northeast regions, where volume fell 16.1%, 14.1% and
13.8%, respectively. Shipments fell just 2.4% year-over-year in the
Midwest, but the region has experienced contracting volume for 12
straight quarters. Meanwhile, shipments in the Southwest region
increased 14%, the region’s largest year-over-year increase since
early 2018.
“This quarter was a prime example of how important it is to
examine regional data when assessing truck freight shipments in the
U.S.,” said Bobby Holland, director of freight data solutions at
U.S. Bank. “Boosted by growing truck-transported trade with Mexico
and increased activity at the Port of Houston, truck freight
activity in the Southwest region is markedly different than what
we’re seeing in other regions.”
Nationwide spending on truck freight fell just 0.3%
year-over-year driven by an 8% year-over-year spending drop in the
Midwest. Spending rose in all other regions, including by 16.7%
annually in the Southwest and 7.8% in the Southeast.
“It’s clear that capacity is not uniform across the country,”
said Bob Costello, senior vice president and chief economist at the
American Trucking Associations. “The spending data we’re seeing in
the South is more evidence that there is real trucking supply
tightness there, while the Midwest is experiencing the
opposite.”
Regional Data
West Shipments Linked quarter: -2.8% Year over year:
-14.1%
Spending Linked quarter: 6.9% Year over year: 2.8%
Shipments declined in the West on a quarterly basis for the
fourth consecutive quarter. Low seaport volumes and a significant
contraction in housing starts appear to be impacting truck freight
volumes in the region.
Southwest Shipments Linked quarter: 5.0% Year over year:
14.0%
Spending Third quarter: 5.7% Year over year: 16.7%
Continuing to be the top region for truck freight, the Southwest
experienced its eighth straight quarter of year-over-year volume
and spending increases.
Midwest Shipments Linked quarter: 1.3% Year over year:
-2.4%
Spending Linked quarter: -5.3% Year over year: -8.0%
The region continues to be the weakest overall, notching its
12th-straight year-over-year contraction in volume. There appears
to be ample truck capacity in the Midwest, which was the only
region to have a drop in spending.
Northeast Shipments Linked quarter: -4.8% Year over year:
-13.8%
Spending Linked quarter: 2.2% Year over year: 2.0%
This was the third-straight year-over-year decline in volume in
the region and the largest drop since Q1 2021. Spending increased
even as diesel fuel prices fell, suggesting marginally constrained
capacity in the area.
Southeast Shipments Linked quarter: -10.1 Year over year:
-16.1%
Spending Linked quarter: 1.8% Year over year: 7.8%
The Southeast had the largest annual decline among all regions,
with the 16.1% drop the largest on record for the region. Similar
to the West, new housing starts and declining seaport activity
appear to be impacting truck freight volume in the Southeast.
To see the full report including in-depth regional data, visit
the U.S. Bank Freight Payment Index website. For 25 years,
organizations have turned to U.S. Bank Freight Payment for the
service, reliability, and security that only a bank can provide.
The U.S. Bank Freight Payment Index measures quantitative changes
in freight shipments and spend activity based on data from
transactions processed through U.S. Bank Freight Payment. The
business processed $46 billion in 2022 for some of the world’s
largest corporations and government agencies.
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Todd Deutsch, U.S. Bank Public Affairs & Communications
todd.deutsch@usbank.com | 612.303.4148
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