Truck freight volumes and spending continued to drop in the second quarter, but at a slower pace than recent quarters, according to the latest U.S. Bank Freight Payment Index.
In the second quarter, shipments nationally dropped 2.2% while spending contracted 2.8% on a quarterly basis. The declines were less severe than the first quarter, when spending fell 16.8% and shipping volume dropped 7.8%. Still, second quarter shipments were down 22.4% compared to a year earlier and spend was off 23.5%.
But the numbers also revealed an optimistic trend: shipments increased in three regions – the West, Northeast and Southeast – on a quarterly basis, the first time multiple regions have experienced increased volume in more than a year.
“Our data is showing some signs that the very challenging freight market could be nearing a bottom,” Bobby Holland, director of freight business analytics, U.S. Bank, said in a release. “There are still headwinds for carriers, but at least in terms of volume, there are some bright spots across the country.”
The 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.
“Trucking companies are facing a triple challenge of lower volumes due to consumer preference to spend on experiences versus goods, suppressed rates, and higher costs,” Bob Costello, senior vice president and chief economist at the American Trucking Associations (ATA), said. “This situation is likely to cause further capacity reductions in the industry.”
