Spending up across all regions; shipments strong in Southwest, weak
in Midwest
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 24, 2018--
The U.S.
Bank Freight Payment Index™ showed gains in both spending and
shipments during the fourth quarter of 2017, 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 American
Trucking Associations Chief Economist Bob Costello, who provides
quarterly analysis and expert commentary on the index results. “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 the
fourth quarter of 2017 include:
-
The National Spending Index jumped 12.5 percent from the third quarter
and 24.8 percent over the same quarter a year earlier. The two gains
were both records for the index dating back to 2010.
-
The National Shipments Index increased just 1.6 percent during the
quarter, significantly below the 5.8 percent and 3.3 percent gains of
the second and third quarters, respectively. Still, it was the best
for fourth quarter of any year since 2014, and notably better than Q4
2016, when the index fell 4 percent.
-
Truck shipments were quite mixed by region during the quarter, ranging
from a drop of 1.4 percent in the Midwest to a surge of 9.1 percent in
the Southwest.
-
All regions saw double-digit gains in spending, the largest jump
coming in the Northeast (16 percent) and the smallest being the
Southeast (just under 11 percent).
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.
A pioneer in automated freight audit and payment for more than 18 years,
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. Through its comprehensive online solution,
organizations can streamline and automate their freight audit and
payment processes while obtaining the business intelligence needed to
maintain a competitive supply chain. U.S. Bank Freight Payment combines
transportation, logistics and supply chain expertise with the backing of
one of the world’s leading payment providers and the security of one of
the world’s most respected financial institutions.
©2018 U.S. Bank
About U.S. Bank(www.usbank.com)
Minneapolis-based U.S. Bancorp (NYSE: USB), with $462 billion in assets
as of December 31, 2017, is the parent company of U.S. Bank National
Association, the fifth largest commercial bank in the United States. The
Company operates 3,067 banking offices in 25 states and 4,771 ATMs and
provides a comprehensive line of banking, investment, mortgage, trust
and payment services products to consumers, businesses and institutions.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180124006185/en/
Source: U.S. Bank
U.S. Bank Corporate Communications
Bill Brady
612-303-0731(o)
| 651-728-2248 (m)
bill.brady@usbank.com
or
William
Mills Agency
Deborah Harris, 678-781-7220
deborah@williammills.com