U.S. Bank's Freight Payment Index shows truck freight shipments and spending continued to contract during the thrid quarter, but at a slower pace than earlier in the year.
"The latest data continues to show some positive developments for the freight market," says Bobby Holland, U.S. Bank's director of freight business analytics. "Over the last two quarters, volume and spend contractions have lessened, but we're waiting for clear evidence that the market has reached the bottom."
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Shipments were down 1.9% compared to the previous quarter, U.S. Bank says, and spending dropped 1.4%. This was the ninth consecutive quarterly decrease in volume, but it was the smallest drop in more than a year. In the West, spending was up 4.4% over the previous quarter and volume increased 1.1%. In the Southeast, spending declined 3.3% and shipments were down 3%.
Stronger West Coast port volumes boosted truck freight levels, the first time shipments have risen for two consecutive quarters in the West since 2021.
The Southwest had the largest quarterly decline in volume at 7.2% following a 13.6% drop in the second quarter. Weaker economic activity, including the impacts from Hurricane Beryl, dampened freight activity in the region.
In the Midwest, positive housing starts pushed truck freight shipments but spending dropped for the third consecutive quarter.
The Northeast last quarter booked a 2.7% increase, but this quarter it dropped 2.8%. Economic activity in the region has been mixed, with increases in residential construction but lower retail sales.
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"It's a positive sign that spending contracted less than shipments," says Bob Costello, senior vice president and chief economist at the American Trucking Associations. "With diesel fuel prices lower, the fact that pricing didn't erode more tells me the market is getting healthier."
U.S. Bank's Freight Payment Index measures quantitative changes in freight shipments and spend activity based on data from transactions processed through U.S. Bank Freight Payment, which processes more than $42 billion in freight payments annually for shippers and carriers across the U.S.
