Freight Spend and Volume Turning The Corner?

US Bank's freight spend and volume indexes are a good proxy for freight activity and industry freight capacity. They measure changes in freight shipments and spend activity based on around $43 billion in annual freight payment transaction volumes through their firm.

Key Observations

• Shipment volumes in Q4 2024 were hurt by hurricanes. The Southeast was impacted the most.
• Spending was up slightly in Q4 2024 in two areas. The Northeast saw a 0.9% increase and the West was up 0.1%, while other areas had lower spending.
• There are signs of tighter capacity. Shipments falling more than spending, even with lower fuel surcharges, indicates tightening, according to Bobby Holland, U.S. Bank director of freight business analytics.
• The inversion between spend and volume in 2022 is notable. The huge peak in freight spend in the middle of 2022 contrasts with the gradual drop in freight volume through the same period.