U.S. Bank Freight Payment Index: Truck freight spending, volume drop for fifth consecutive quarter
November 01 2023 - 8:00AM
Business Wire
With another challenging quarter for truck
freight economy, shipments are down nearly 10% year-over- year
nationwide and almost 23% in West region
During the third quarter, the amount spent to ship goods via
truck freight was down 12.5% compared to a year prior while the
volume of shipments was off 9.7%, according to the U.S. Bank
Freight Payment Index. Spending fell 4.2% and shipments declined
3.4% from the second quarter to the third quarter of 2023. This
marks the fifth consecutive quarter that both truck freight
spending and volume have declined.
“This quarter’s Freight Payment Index results confirm that we
are in a very challenging environment for motor carriers,” said Bob
Costello, senior vice president and chief economist at the American
Trucking Associations. Costello pointed to a variety of factors
that are impacting the truck freight economy, including retailer
inventory reduction, decreased homebuilding and consumers
preferring to spend on experiences over goods.
The pullback in shipments was greatest in the West region, where
volume was down 22.9% compared with the third quarter of 2022.
Spending, meanwhile, contracted the greatest in the Midwest region,
where it’s down more 17.9% year-over-year. Even the Southwest
region – which has stood out in recent quarters for spending
increases – saw a drop of 4.8% compared to the previous
quarter.
“Across the board our data is showing a continued decline of the
truck freight market, especially compared to last year’s strong
performance,” said Bobby Holland, director of freight business
analytics, U.S. Bank. “We’ll be watching closely in upcoming
quarters for signals that the market has reached a bottom in terms
of volume and spending.”
Regional Data
West Shipments Linked quarter: -9.0% Year over year:
-22.9%
Spending Linked quarter: -5.1% Year over year: -14.1%
This was the sixth consecutive quarter of shipment declines in
the West region, which has been negatively impacted by soft import
volumes.
Southwest Shipments Linked quarter: -4.8% Year over year:
3.3%
Spending Third quarter: -7.0% Year over year: -4.6%
This is the first quarterly decline in shipments the Southwest
has experienced since early 2022. Shipments had increased 17.3%
over the previous five quarters. A decline in homebuilding and
cross-border truck transportation in the region contributed to the
drop in volume.
Midwest Shipments Linked quarter: -1.1% Year over year:
-6.3%
Spending Linked quarter: -4.4% Year over year: -17.9%
The Midwest region had the lowest quarterly contraction in
shipments among all regions. The region has experienced spending
declines for three consecutive quarters.
Northeast Shipments Linked quarter: -2.7% Year over year:
-20.8%
Spending Linked quarter: -1.6% Year over year: -11.1%
Spending in the region had the smallest quarterly drop of all
regions, significantly lower than the 10.9% decline in the previous
quarter.
Southeast Shipments Linked quarter: -2.7% Year over year:
-14.0%
Spending Linked quarter: -2.8% Year over year: -5.1%
Shipments in the Southeast region have now declined for nine
consecutive quarters. Fewer housing starts in the region have
contributed to recent declines.
To see the full report including in-depth regional data, visit
the U.S. Bank Freight Payment Index website. For more than 25
years, organizations have turned to U.S. Bank Freight Payment for
the service, reliability, and security of a full-service, federally
regulated financial institution. 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.
About U.S. Bank
U.S. Bancorp, with approximately 75,000 employees and $668
billion in assets as of September 30, 2023, is the parent company
of U.S. Bank National Association. Headquartered in Minneapolis,
the company serves millions of customers locally, nationally and
globally through a diversified mix of businesses including consumer
banking, business banking, commercial banking, institutional
banking, payments and wealth management. U.S. Bancorp has been
recognized for its approach to digital innovation, community
partnerships and customer service, including being named one of the
2023 World’s Most Ethical Companies and Fortune’s most admired
superregional bank. To learn more, please visit the U.S. Bancorp
website at usbank.com and click on “About Us.”
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version on businesswire.com: https://www.businesswire.com/news/home/20231101054786/en/
Todd Deutsch, U.S. Bank Public Affairs & Communications
todd.deutsch@usbank.com | 612.303.4148
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