Fed ‘Beige Book’ Cites Softer Freight Volumes

Economic activity increased modestly from of mid-November through early January, although demand for transportation services was generally weak, the Federal Reserve said.

The transport downturn was led by lower demand from the housing sector, the Fed said in its “beige book” report released Wednesday. The Fed releases the report eight times a year, and the latest one was based on information collected from Nov. 17 through Jan. 6.

Freight volume continued to weaken in the Atlanta and Cleveland districts and was slow in the Dallas region, the report said.

Intermodal volumes declined in the Atlanta and Dallas Districts, although Dallas noted that rail shipments were up, led by agricultural shipments.

Trucking contacts reported that 2008 will be a “challenging year with little rebound in business activity until the second quarter at the earliest,” the Fed said.

Shipping prices remained very competitive while fuel prices continue to rise, although most carriers were able to recover some of the increased cost through surcharges, the report said.