Shipper costs hit five-year high as freight demand stalls

U.S. shippers continue to pay more to move freight even as shipment volumes remain largely unchanged, according to the latest U.S. Bank Freight Payment Index.

Third-quarter shipper spending surged 32.1% from a year ago, marking the largest annual increase since 2021, primarily driven by tightened carrier capacity and diesel prices climbing over $6.50 per gallon nationally.

At the same time, national shipment volumes increased both quarter-over-quarter and year-over-year for the first time since 2021, but the gains were modest at 0.4% and 0.5% respectively.

“What makes this quarter notable is that outlays are rising much faster than freight volumes,” said Bob Costello, senior vice president and chief economist at the American Trucking Associations. “Freight demand remains uneven, but companies are encountering tighter truck capacity, higher fuel costs and stronger carrier pricing power. As a result, shippers are spending substantially more to move essentially the same amount of freight.”

This story was originally published by Supply Chain Quarterly. Read the full story at Supply Chain Quarterly →