US shipper costs hit five-year high even as demand stalls, US Bank data shows
XLI•US shippers’ freight spending rose 32.1% year over year in the third quarter, reaching its highest level since 2021, while shipment volumes increased just 0.5%.
1. Costs rise as volumes stall
US shippers paid the most to move freight since 2021 in the third quarter, with spending up 32.1% year over year, the US Bank Freight Payment Index showed. Spending rose in every region, led by the Southwest at 51.6%, while national shipment volumes increased 0.5%.
2. Higher rates and operating costs
The index attributed higher trucking rates to reduced driver availability following federal immigration enforcement actions and diesel prices above $6 per gallon after hostilities with Iran. American Trucking Associations chief economist Bob Costello said outlays were rising much faster than freight volume; US Bank’s Bobby Holland said tighter capacity and higher operating costs were pushing spending up even where volumes were flat or declining.
