The U.S. Bank Freight Payment Index showed gains in both spending and shipments during Q4/17, but the scope of the advances differed widely.
Spending for trucking services advanced by the highest rates so far this decade, reflecting solid demand coupled with tighter capacity due to driver shortages and new regulations. Shipments, on the other hand, increased by the smallest amount of any quarter in 2017, fitting with expected economic output deceleration during the final quarter of the year.
“The growth in shipments for the fourth quarter was solid, just not quite the torrid pace of the previous two quarters,” said Bob Costello, American Trucking Associations’ chief economist. “This matches with the broader economic picture, where gross domestic product is expected to show a slowing down for Q4. The concurrent strength in spending can be traced in part to solid demand, but also to a driver shortage accentuated by the new federal requirement that trucks be equipped with electronic logging devices, or ELDs, to track driver hours-of-service, which took effect in December.”
Highlights and analysis of the U.S. Bank Freight Payment Index for Q4/17 include:
The quarterly U.S. Bank Freight Payment Index measures quantitative changes in shipment 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. U.S. Bank Freight Payment processes around $23 billion in global freight payments annually for some of the world’s largest corporations and government agencies.
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