U.S. Bank Freight Payment Index: Shipments, Spending Drop by Sharpest Amount Since Beginning of Pandemic
August 01 2023 - 9:00AM
Business Wire
In second quarter, truck shipments fall 9%
nationwide as volume drops 27% in Northeast region
Truck freight volume and spending in the second quarter of 2023
declined by the highest levels since the early days of the
pandemic, the latest U.S. Bank Freight Payment Index revealed.
Spending by shippers dropped 10.9% compared to the second quarter
of 2022 while shipment volume dropped 9%.
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U.S. Bank Freight Payment Index for Q2
2023 (Photo: Business Wire)
“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 (27.1%) and Southeast (12.6%) year-over-year. The
Southwest continued to be a bright spot, with shipments increasing
14.8%.
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, 18.7% year-over-year. The Northeast and West also
experienced double-digit spending declines, dropping 10.9% and
10.2%, respectively versus the second quarter of 2022.
“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, U.S. Bank.
“Nearly every category we track – both nationwide and regionally –
contracted in second quarter.”
Regional Data
West Shipments Linked quarter: -2.6% Year over year:
-15.7%
Spending Linked quarter: -9.0% Year over year: -10.2%
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 Shipments Linked quarter: 2.9% Year over year:
14.8%
Spending Linked quarter: -6.4% Year over year: 4.3%
Continuing to outperform other regions, Southwest volume is
benefiting from increased truck-transported trade with Mexico. The
14.8% year-over-year increase in shipments is the highest since
2018.
Midwest Shipments Linked quarter: -0.5% Year over year:
-9.0%
Spending Linked quarter: -9.4% Year over year: -18.7%
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 Shipments Linked quarter: -9.2% Year over year:
-27.1%
Spending Linked quarter: -10.9% Year over year: -11.0%
The 27.1% volume contraction is the largest in the history of
the Freight Payment Index. The region faces multiple headwinds,
including low housing starts. However, the contraction in household
consumption likely had the biggest impact for this populated
area.
Southeast Shipments Linked quarter: -0.2 Year over year:
-12.6%
Spending Linked quarter: -6.7% Year over year: -2.5%
Even though shipments contracted 12.6% year over year and
slightly on a linked quarter basis, this was an improvement for the
region. In the first quarter, shipments fell 16.1% year over year
and 10.1% on a linked quarter basis.
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.
About U.S. Bank
U.S. Bancorp, with approximately 77,000 employees and $681
billion in assets as of June 30, 2023, is the parent company of
U.S. Bank National Association. The Minneapolis-based company
serves millions of customers locally, nationally and globally
through a diversified mix of businesses: Consumer and Business
Banking; Payment Services; Corporate & Commercial Banking; and
Wealth Management and Investment Services. Union Bank, consisting
primarily of retail banking branches on the West Coast, joined U.S.
Bancorp in 2022. U.S. Bancorp has been recognized for its approach
to digital innovation, social responsibility, and customer service,
including being named one of the 2023 World’s Most Ethical
Companies. Learn more at usbank.com/about.
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version on businesswire.com: https://www.businesswire.com/news/home/20230801338184/en/
Aili Jokela, U.S. Bank Public Affairs & Communications
Aili.Jokela@usbank.com | 503-464-4923
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