Fed Cites Lag in Transport Services Demand
Demand for transportation services has lowered since early October, and costs for services have fallen in some areas, and demand for transportation services will continue into 2009, the Federal Reserve said Wednesday.
Most areas of economic activity are slowing, and the transportation sector is no exception, the Fed said in its Beige Book report, released eight times a year. Wednesday’s report covered the period of Oct. 7 through Nov. 23.
The Fed’s Cleveland and San Francisco districts reported that as fuel prices have fallen, some carriers have lowered fuel surcharges.
“Nearly every District reported decreased demand for construction materials,” the Fed said. Construction is a key sector for the trucking industry, and transportation firms have seen decreases in shipping from the automotive industry.
Freight volumes and revenue fell in most areas of the country, the report said, and as demand has dropped, districts such as Atlanta have seen decreases in employees’ payroll and hours.
