Truck freight spending in US falls 12.5 per cent in Q3 2023

02 Nov '23

2 min read

Pic: Adobe Stock/Siwakorn1933

Insights

In Q3 2023, the US saw a 12.5 per cent YoY drop in truck freight spending and a 9.7 per cent decrease in shipment volume, continuing a five-quarter downward trend.
Spending and shipments fell 4.2 per cent and 3.4 per cent, from Q2.
The West reported the largest volume drop at 22.9 per cent, while spending in the Midwest shrunk by 17.9 per cent.

In the US, the amount spent to ship goods via truck freight was down 12.5 per cent compared to a year prior while the volume of shipments was off 9.7 per cent during the third quarter (Q3) of 2023. Spending fell 4.2 per cent and shipments declined 3.4 per cent from Q2 to Q3 of 2023. This marks the fifth consecutive quarter that both truck freight spending and volume have declined.

The pullback in shipments was greatest in the West region, where volume was down 22.9 per cent compared with Q3 2022. Spending, meanwhile, contracted the greatest in the Midwest region, where it’s down more 17.9 per cent year-over-year (YoY). Even the Southwest region—which has stood out in recent quarters for spending increases—saw a drop of 4.8 per cent compared to the previous quarter, according to the US Bank Freight Payment Index.

This is the first quarterly decline in shipments the Southwest has experienced since early 2022. Shipments had increased 17.3 per cent over the previous five quarters. The Midwest region had the lowest quarterly contraction in shipments among all regions. The region has experienced spending declines for three consecutive quarters.

Spending in the region had the smallest quarterly drop of all regions, significantly lower than the 10.9 per cent decline in the previous quarter.

Shipments in the Southeast region have now declined for nine consecutive quarters.

Fibre2Fashion News Desk (NB)

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