MINNEAPOLIS — For the fourth quarter in a row, freight volume has contracted on an annual basis, with freight shipments via truck declining 6.1% year-over-year in the first quarter of 2023.
This is according to the latest U.S. Bank Freight Payment Index.
The drop was most intense in the Southeast, West and Northeast regions, where volume fell 16.1%, 14.1% and 13.8%, respectively, according to the index.
Shipments fell just 2.4% year-over-year in the Midwest, but the region has experienced contracting volume for 12 straight quarters. Meanwhile, shipments in the Southwest region increased 14%, the region’s largest year-over-year increase since early 2018.
“This quarter was a prime example of how important it is to examine regional data when assessing truck freight shipments in the U.S.,” said Bobby Holland, director of freight data solutions at U.S. Bank. “Boosted by growing truck-transported trade with Mexico and increased activity at the Port of Houston, truck freight activity in the Southwest region is markedly different than what we’re seeing in other regions.”
Nationwide, spending on truck freight fell just 0.3% year-over-year and was driven by an 8% year-over-year spending drop in the Midwest, according to the index.
Spending rose in all other regions, including by 16.7% annually in the Southwest and 7.8% in the Southeast.
“It’s clear that capacity is not uniform across the country,” said Bob Costello, senior vice president and chief economist at the American Trucking Associations. “The spending data we’re seeing in the South is more evidence that there is real trucking supply tightness there, while the Midwest is experiencing the opposite.”
- Linked quarter: -2.8%.
- Year over year: -14.1%.
- Linked quarter: 6.9%.
- Year over year: 2.8%.
Shipments declined in the West on a quarterly basis for the fourth consecutive quarter. Low seaport volumes and a significant contraction in housing starts appear to be impacting truck freight volumes in the region.
- Linked quarter: 5.0%.
- Year over year: 14.0%.
- Third quarter: 5.7%.
- Year over year: 16.7%.
Continuing to be the top region for truck freight, the Southwest experienced its eighth straight quarter of year-over-year volume and spending increases.
- Linked quarter: 1.3%.
- Year over year: -2.4%.
- Linked quarter: -5.3%.
- Year over year: -8.0%.
The region continues to be the weakest overall, notching its 12th-straight year-over-year contraction in volume. There appears to be ample truck capacity in the Midwest, which was the only region to have a drop in spending.
- Linked quarter: -4.8%.
- Year over year: -13.8%.
- Linked quarter: 2.2%.
- Year over year: 2.0%.
This was the third-straight year-over-year decline in volume in the region and the largest drop since Q1 2021. Spending increased even as diesel fuel prices fell, suggesting marginally constrained capacity in the area.
- Linked quarter: -10.1%.
- Year over year: -16.1%.
- Linked quarter: 1.8%.
- Year over year: 7.8%.
The Southeast had the largest annual decline among all regions, with the 16.1% drop the largest on record for the region. Similar to the West, new housing starts and declining seaport activity appear to be impacting truck freight volume in the Southeast.
The Trucker News Staff produces engaging content for not only TheTrucker.com, but also The Trucker Newspaper, which has been serving the trucking industry for more than 30 years. With a focus on drivers, the Trucker News Staff aims to provide relevant, objective content pertaining to the trucking segment of the transportation industry. The Trucker News Staff is based in Little Rock, Arkansas.