In 2023, the U.S. truck freight market witnessed a notable decline in both shipment volume and spending, as per the latest U.S. Bank Freight Payment Index. The fourth quarter saw a 15.7% drop in shipment volume and a 13.5% contraction in spending compared to the same period in 2022, marking the largest year-over-year volume decrease in the Index’s history.
Bob Costello, Senior Vice President and Chief Economist at the American Trucking Associations, attributes these declines to companies reducing inventories and consumers favoring experiences over goods. The Southeast (-25.4%) and Northeast (-23.8%) experienced the most significant volume slowdown in the fourth quarter.
Spending reductions were observed across all regions, with the Midwest (-17%) seeing the most substantial decline. Despite the continued decline in spending, Bobby Holland, Director of Freight Business Analytics at U.S. Bank, notes signs suggesting a potential balance between trucking supply and demand in the coming quarters.
National Data:
- Shipments:
- Linked quarter: -10.9%
- Year over year: -15.7%
- Spending:
- Linked quarter: -1.4%
- Year over year: -13.5%
Regional Data:
West:
- Shipments:
- Linked quarter: -2.9%
- Year over year: -16.3%
- Spending:
- Linked quarter: 0.2%
- Year over year: -7.4%
Despite an increase in spending on a quarter-over-quarter basis, the West witnessed a -7.4% decline in spending compared to the previous year. Improved West Coast import volumes may have positively impacted shipment volumes, although they still experienced a decrease compared to most regions.
Southwest:
- Shipments:
- Linked quarter: -18.2%
- Year over year: -15.9%
- Spending:
- Third quarter: -2.7%
- Year over year: -10.4%
After a slowdown in the third quarter, the Southwest truck freight market contracted significantly in Q4. Slower retail and home sales in the first half of the quarter weighed on truck freight volumes.
Midwest:
- Shipments:
- Linked quarter: -8.6%
- Year over year: -8.9%
- Spending:
- Linked quarter: 1.2%
- Year over year: -17.0%
The Midwest exhibited the smallest contraction in shipment volumes among all regions in comparison to Q4 2022. Soft manufacturing, consumer spending, and housing activity likely contributed to the prolonged depression in freight volumes.
Northeast:
- Shipments:
- Linked quarter: -9.4%
- Year over year: -23.8%
- Spending:
- Linked quarter: -2.5%
- Year over year: -12.5%
The Northeast faced challenges in 2023 with consumer spending moderation and a softening manufacturing activity affecting its truck freight market.
Southeast:
- Shipments:
- Linked quarter: -14.5%
- Year over year: -25.4%
- Spending:
- Linked quarter: -4.1%
- Year over year: -11.4%
Experiencing the largest year-over-year drop in volume, the Southeast has consistently faced volume contractions and spending declines in recent quarters.
For a comprehensive overview, including in-depth regional data, visit the U.S. Bank Freight Payment Index website. Organizations have relied on U.S. Bank Freight Payment for over 25 years for the service, reliability, and security of a full-service, federally-regulated financial institution. The U.S. Bank Freight Payment Index quantifies changes in freight shipments and spending based on data from transactions processed through U.S. Bank Freight Payment.
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