During the third quarter, the amount spent to ship goods via truck freight was down 12.5 percent compared to a year prior while the volume of shipments was off 9.7 percent, according to the U.S. Bank Freight Payment Index. Spending fell 4.2 percent and shipments declined 3.4 percent from the second quarter to the third quarter of 2023. This marks the fifth consecutive quarter that both truck freight spending and volume have declined.

“This quarter’s Freight Payment Index results confirm that we are in a very challenging environment for motor carriers,” said Bob Costello, Senior Vice President and Chief Economist at the American Trucking Associations. Costello pointed to a variety of factors that are impacting the truck freight economy, including retailer inventory reduction, decreased homebuilding and consumers preferring to spend on experiences over goods.

The pullback in shipments was greatest in the West region, where volume was down 22.9 percent compared with the third quarter of 2022. Spending, meanwhile, contracted the greatest in the Midwest region, where it’s down more 17.9 percent year-over-year. Even the Southwest region – which has stood out in recent quarters for spending increases – saw a drop of 4.8 percent compared to the previous quarter.

“Across the board our data is showing a continued decline of the truck freight market, especially compared to last year’s strong performance,” said Bobby Holland, Director of Freight Business Analytics, U.S. Bank. “We’ll be watching closely in upcoming quarters for signals that the market has reached a bottom in terms of volume and spending.”

Regional Data

West
Shipments
Linked quarter: -9.0 percent
Year over year: -22.9 percent

Spending
Linked quarter: -5.1 percent
Year over year: -14.1 percent

This was the sixth consecutive quarter of shipment declines in the West region, which has been negatively impacted by soft import volumes.

Southwest
Shipments
Linked quarter: -4.8 percent
Year over year: 3.3 percent

Spending
Third quarter: -7.0 percent
Year over year: -4.6 percent

This is the first quarterly decline in shipments the Southwest has experienced since early 2022. Shipments had increased 17.3 percent over the previous five quarters. A decline in homebuilding and cross-border truck transportation in the region contributed to the drop in volume.

Midwest
Shipments
Linked quarter: -1.1 percent
Year over year: -6.3 percent

Spending
Linked quarter: -4.4 percent
Year over year: -17.9 percent

The Midwest region had the lowest quarterly contraction in shipments among all regions. The region has experienced spending declines for three consecutive quarters.

Northeast
Shipments
Linked quarter: -2.7 percent
Year over year: -20.8 percent

Spending
Linked quarter: -1.6 percent
Year over year: -11.1 percent

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

Southeast
Shipments
Linked quarter: -2.7 percent
Year over year: -14.0 percent

Spending
Linked quarter: -2.8 percent
Year over year: -5.1 percent

Shipments in the Southeast region have now declined for nine consecutive quarters. Fewer housing starts in the region have contributed to recent declines.