We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » U.S. Bank Freight Payment Index sees high Q3 shipment and spend levels, shows some deceleration
Press releases are provided by companies as is and have not been edited or checked for accuracy. Any queries should be directed to the company issuing the release.

Upload your press release

U.S. Bank Freight Payment Index sees high Q3 shipment and spend levels, shows some deceleration

October 25, 2018
No Comments

The U.S. Bank Freight Payment Index™ - a tool designed to assess the current state of the freight industry in the U.S. - showed declines in the third quarter compared with the second quarter in 2018.

The changes between quarters were driven by several factors according to Bob Costello, a freight industry analyst and chief economist for American Trucking Associations, including a moderating U.S. economy compared with the previous quarter and other factors like Hurricane Florence and potential early signs of tariff impacts. On a year-over-year basis, however, the overall freight spend increased by double-digits despite lower freight shipment volumes, which reflects higher average freight transaction prices.

"Linked quarter declines in both freight shipment volume and spend are in line with the deceleration many expected in third quarter gross domestic product growth," said Costello. "As trucking often leads the broader economy, the decreases seen in the U.S. Bank Freight Payment Index suggest economic growth may have peaked and may decelerate in the fourth quarter and beyond. Despite the sequential decreases in freight shipments and spending last quarter, the national truck market remains solid and capacity tight."

Costello also said it is difficult to ascertain the exact impact that Hurricane Florence had in the Southeast region during the third quarter, but undoubtedly it was negative. However, there will eventually be a freight bump associated with hurricane rebuilding efforts. Costello also noted, while still very early in implementation, U.S. tariffs on some foreign products - as well as retaliatory tariffs on some U.S. goods - likely had at least a slight negative impact on the quarter.

Freight shipments
U.S. freight shipment volume in Q3 decreased 5.2 percent from the second quarter and is down 1.1 percent from the same period last year.

Spend
The amount spent on U.S. freight costs in Q3 decreased 1.2 percent from the second quarter, but is up 13.5 percent from the same period last year. This is driven in large part by the constrained trucking capacity in the U.S.

About the U.S. Bank Freight Payment Index
"The U.S. Bank Freight Payment Index helps our clients make better decisions when planning and forecasting for their businesses," said John Hardin, U.S. Bank Global Transportation General Manager. "It also helps shippers and carriers understand regional variability."

The U.S. Bank Freight Payment Index measures quantitative changes in freight shipments and spend activity based on data from transactions processed through U.S. Bank Freight Payment. These transactions are made on behalf of clients across a range of industries, including automotive, manufacturing, food and retail.

A pioneer in automated freight audit and payment, U.S. Bank Freight Payment is celebrating its 20th year of facilitating transactions between shippers and carriers. The business processed more than $24.5 billion in global freight payments in 2017 for some of the world's largest corporations and government agencies. For more information and to subscribe to the Index, visit www.freight.usbank.com.

Activity by U.S. Region
All regions saw freight shipments contract from the second to third quarters this year, ranging from a 3.4 percent decline in the West to an 8.6 percent decline in the Southwest. These results are in line with contractions from the second to third quarters in both spot market and contract truck freight volumes.

Conversely, on a year-over-year basis, all regions witnessed solid gains in spending. Despite a sequential drop in freight shipments across all regions, truck capacity remained constrained enough for all regions to witness robust year-over-year gains in spending.
Regional highlights of the Q3 2018 U.S. Bank Freight Payment Index include:

West Region
The West region had the best third quarter among all five regions as volumes contracted the least over the second quarter and it was the only region to post a gain in spending.

Softer trade volumes at West Coast ports - especially in July and August - had a negative impact on volumes in Q3, as did new housing starts, which were also weaker in this region.

Despite the reductions in freight shipments, freight spend increased 1.4 percent over the last quarter and 7.4 percent over Q3 last year.

Southwest Region
Freight shipments and spending in the Southwest region fell more than any other region compared with the second quarter.

The Southwest regional economy continues to be one of the strongest in the country. Truck volumes and spending, while moderating in the third quarter, will remain at high levels there.

Midwest Region
The freight shipment index in the Midwest region fell by 6.4 percent during the third quarter, which was the largest sequential drop since 2010.

One of the factors hurting this region in the third quarter was weak home construction.

Northeast Region
The Northeast freight shipment volume and spend fell by similar levels from the second to third quarters.
A third quarter drag in the region was softness in home construction, especially in multi-family units, like apartment buildings.

Despite the soft third quarter, going forward, the Northeast region should benefit from better factory activity and a solid holiday spending season.

Southeast Region
Hurricane Florence had a negative impact in the Southeast region during the third quarter. However, there will eventually be a freight bump associated with hurricane rebuilding effort.

Not only was this the first sequential decline in freight shipments since the final quarter in 2016, it was the largest since 2010.

The Southeast region will likely benefit from solid factory output in the quarters ahead, as well as strong household consumption.

More Info: https://freight.usbank.com/?es=a142&a=20

Submit your logistics, material handling, or supply chain related company news in Supply Chain Quarterly's's Industry Press Room section or New Products section
  • Related Articles

    Q3 U.S. Bank Freight Payment Index Stays Relatively Flat Versus Q2

    U.S. Bank Freight Payment Index reflects mixed results in Q1, moderation after record levels in 2018

    U.S. Bank Freight Payment Index showed evidence of a rebalance from Q1

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • New Jersey truck fleet says Freightliner tractors will deliver safety as well as freight

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing