Commodities
Home›Commodities›Energy›Truck capacity tightens as shippers pay more for less
Truck capacity tightens as shippers pay more for less
U.S. shipment volumes slid 1.1% sequentially in April to June, while shipper spending rose 6.4%, widening the gap between loads and costs.
A U.S. Bank Freight Payment Index released Tuesday found that freight demand softened between April and June but shippers paid more for the reduced volume, a mix that worsened operating leverage for shippers. The National Shipment Index fell 1.1% from the first quarter to 75.1, marking the second straight sequential decline. On the year, volumes dropped 2.8%, reversing the first-quarter 0.6% annual gain.
Spending, however, rose sharply, climbing 6.4% to 230.4 in the second quarter and increasing 28.1% versus a year earlier. The American Trucking Associations said higher fuel prices added to costs, but fuel was not the primary driver of the spending increase. DAT Freight & Analytics reported that second-quarter fuel costs averaged 75 cents per mile, 47.1% above the first quarter and 78.6% higher than a year earlier. The quarter also saw diesel prices fall from an April peak above $5.64 per gallon to $4.67 by late in the period, nearly a dollar lower.