As the US trucking market continues to grapple with uncertainty, the latest data from US Bank’s Freight Payment Index for the first quarter delivers somber news, highlighting a persistent decline in both shipment volume and freight spending.
Shipment volume declined by 7.8% from the previous quarter and a substantial 21.6% year-on-year, while freight spending worsened, dropping by 16.8% from Q4 23 and 27.9% from Q1 23. Bobby Holland, Director of Freight Business Analytics at US Bank, remarked on the prolonged challenges facing the industry, citing the eighth consecutive quarter of year-on-year volume decreases and the fifth consecutive quarter of spending declines.
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The decline was widespread across all regions of the US, with winter storms and the typical post-peak season lull exacerbating the situation. Notably, the US northeast experienced the most significant downturn, with shipments falling by 17.4% from Q4 23 and 33.9% year on year, accompanied by a slump in spending of 23.8% and 34.8%, respectively.
Despite recent improvements in economic indicators such as rising imports and retail sales projections, trucking operators and analysts remain cautious due to persistent overcapacity in the market. The south-east recorded its 12th consecutive quarterly decline, signaling ongoing challenges despite positive signs in the broader economy.
While economic indicators suggest a potential turnaround, the US trucking sector faces a long road to recovery, with mounting casualties expected as unsustainable pricing dynamics continue to pressure industry players.
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