The U.S. Bank Freight Payment Index reported a continued contraction in truck freight shipments and spending in the third quarter. However, the rate of decline was slower than earlier in the year. Shipments decreased by 1.9% compared to the previous quarter, while spending dropped by 1.4%. This marks the ninth consecutive quarterly decrease in volume, but it’s the smallest drop in over a year.
Regional variations were evident in Q3. The West saw a 4.4% increase in spending and a 1.1% rise in volume over the previous quarter. In contrast, the Southeast experienced a 3.3% decline in spending and a 3.0% drop in shipments.
Interpreting the Freight Market Health
Bobby Holland, U.S. Bank’s Director of Freight Business Analytics, noted that while there are still sequential declines nationwide and in most regions, the contractions in volume and spend have lessened over the last two quarters. The market is still waiting for clear evidence of hitting the bottom.
Bob Costello, Senior Vice President and Chief Economist at the American Trucking Associations (ATA), viewed the smaller contraction in spending compared to shipments as a positive sign. He attributed this to lower diesel fuel prices and suggested that the market is getting healthier.
The U.S. Bank Freight Payment Index, which processes over $42 billion in freight payments annually, provides these insights to help customers make informed business decisions and identify new opportunities.
