U.S. Bank Freight Payment Index: Truck freight contraction continues
Compared to a year earlier, first quarter 2024 spending fell 27.9% while shipment volume dropped 21.6%
“While there was hope for a freight market turnaround to start the year, our data shows that the challenges continued,” said
The
“Spending fell disproportionately to the drop in volume, which suggests downward rates pressure to start the year,” said
National Data
Shipments
Linked quarter: -7.8%
Year over year: -21.6%
Spending
Linked quarter: -16.8%
Year over year: -27.9%
Regional Data
West
Shipments
Linked quarter: -10.6%
Year over year: -23.0%
Spending
Linked quarter: -19.9%
Year over year: -30.6%
Overcapacity, bad weather and consumers spending less on goods all impacted the truck freight market in the West. This was the third time since the height of the pandemic that the region had annual and quarterly declines in both spending and volume.
Southwest
Shipments
Linked quarter: 8.9%
Year over year: -12.8%
Spending
Third quarter: -16.5%
Year over year: -29.2%
The only region to have higher volumes, shipments in the Southwest were up 8.9% over the previous quarter. However, they were down -12.8% year over year. Weaker factory output in the region was partially offset by higher cross-border freight from
Midwest
Shipments
Linked quarter: -9.5%
Year over year: -18.5%
Spending
Linked quarter: -15.4%
Year over year: -25.9%
Shipment volumes dropped for the fourth consecutive quarter in the Midwest. A slowdown in auto sales and softer manufacturing activity contributed to the declines.
Northeast
Shipments
Linked quarter: -17.5%
Year over year: -33.9%
Spending
Linked quarter: -23.8%
Year over year: -34.8%
The Northeast had an extremely difficult quarter, with the largest declines of all five regions. Bad winter storms and softer retail sales were two drivers of the major contractions in volume and spending.
Southeast
Shipments
Linked quarter: -9.0%
Year over year: -24.4%
Spending
Linked quarter: -13.8%
Year over year: -25.0%
The Southeast experienced its 11th consecutive quarter where shipments contracted sequentially. However, the region had the smallest decline in volume of the four regions that contracted and the smallest decline in spending.
To see the full report including in-depth regional data, visit the
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todd.deutsch@usbank.com | 612.303.4148
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