Shipping and Logistics

January 30, 2020
Freight Industry Looks Forward to Increased Shipping in 2020
Written by Sandy Williams
The U.S. Bank Freight Payment Index, a quarterly analysis of freight volumes and spending, fell 4.0 percent in the fourth quarter after gaining a total of 10 percent in the second and third quarters. Both volumes and spending dropped during the quarter due to weaker economic activity and impacts from the international trade market.
The Q4 slump in shipping was attributed to a decline in factory output as export demand weakened and investment spending paused due to trade uncertainty. A reduction in China imports and a slower economy caused an imbalance between shipping capacity and inventory, said the report. Trucking firms anticipating larger shipments led to higher truck purchasing that, with the economic slowdown, resulted in more supply than demand.


