Truck freight shipments in Q4 2022 contracted 7.1% year-over-year — the largest drop since the heart of the pandemic. They were also down 4.6% compared to Q3 2022, according to the findings of the Q4 2022 U.S. Bank Freight Payment Index, released February 1.
U.S. Bank said the slowdown in volume was driven by a significant contraction in the West region, where volumes dropped 8.9% year-over-year and 10.6% compared to the third quarter.
Spending fell just 0.2% compared to the third quarter and was up 1.8% over Q4 2021. Only the West region experienced a significant decline in spending, down 7% compared to Q3 2022 and 7.4% year-over-year.
“With shipments dropping considerably and lower diesel fuel prices, we would have expected to see a larger decline in spending this quarter,” said Bobby Holland, director of freight data solutions at U.S. Bank. “This suggests that capacity is getting tighter, potentially due to smaller carriers leaving the market as cost pressures remain high, especially when coupled with lower spot market volumes and rates.”
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