The U.S. truck freight market saw further declines in shipments and spending at the end of 2024, signaling continued economic headwinds for the industry, according to the latest U.S. Bank Freight Payment Index.

Shipment volume in the fourth quarter fell 4.7% compared to the previous quarter, while spending dropped 2.2%. The annual picture was even more severe, with shipments down 15.7% and spending falling 22% year over year.

“It’s clear there are both cyclical and structural challenges remaining as we look for a truck freight market reboot,” said Bob Costello, senior vice president and chief economist at the American Trucking Associations. “For instance, factory output softness – which has a disproportionate impact on truck freight volumes – is currently weighing heavily on our industry.”

Regional data showed widespread declines, with the Southeast experiencing the steepest drop in shipments at 6.7%, in part due to hurricanes disrupting freight activity. The Midwest and Southwest also saw shipment declines of more than 5%, reflecting weak manufacturing and slower construction activity. The Northeast had the smallest drop in shipment volume at 1.2%, but it led all regions with a 0.9% increase in freight spending, indicating tighter trucking capacity.

Despite the overall decline in spending, some signs of resilience emerged. “While this quarter’s Index revealed spending overall on truck freight continues to decline, we did see some signs that spending per truck is increasing,” said Bobby Holland, U.S. Bank director of freight business analytics. “Shipments falling more than spending – even with lower fuel surcharges – suggests tighter capacity.”

The U.S. Bank Freight Payment Index tracks shipment and spending data from transactions processed through U.S. Bank Freight Payment, which handles more than $43 billion in freight payments annually. Industry stakeholders use the Index’s insights to navigate market conditions and make strategic decisions.

For a full breakdown of regional and national freight trends, visit the U.S. Bank Freight Payment Index website.