Freight Activity Mixed Nationwide as Economy Continues to Expand, Fed Says
The overall economy continued to expand across most of the country from early April to late May, but reports on freight activity and transportation services were mixed, the Federal Reserve said.
Trucking activity expanded year-over-year in the Atlanta district but fell in the Philadelphia district, and trucking firms in the Dallas area saw mixed demand, the Fed said in its Beige Book report released June 3.
Freight haulers in the Cleveland district reported volume has softened over the period and said they believe markets generally are not as robust as during the fourth quarter.
The Cleveland area had growth in intermodal transportation, but the outlook for freight transportation the next few months is uncertain, the Fed said.
An ongoing and widespread shortage of truck drivers was noted in New York, Cleveland and Kansas City, and the driver shortage continues to put upward pressure on the driver pay scale across the industry, according to the report.
In the Philadelphia district, a transportation services analyst said trucking and rail activity looked weaker compared with a year ago, even taking into account a temporary lull due to regulatory constraints.
Trucking activity in the Atlanta area expanded as compared with year-earlier levels, with contacts expecting higher levels of activity over the course of the year, according to the report.
The Atlanta region reported strong growth in containerized, bulk and break-bulk cargo, and railroad contacts said total traffic was flat to slightly down, compared with a year ago.
The Fed releases its Beige Book report eight times a year. The report, which covered April 3-May 22, was prepared by the Federal Reserve Bank of Dallas.
