Freight Slows Slightly From February to April, Fed says
Growth in freight shipments slowed slightly between mid-February and the start of April, according to a Federal Reserve report.
Parts of the country reported worker shortages, and increased labor costs were restraining growth in transportation and that businesses expected labor demand to increase in the next six months, the Fed said in its Beige Book report, released April 19.
In the Richmond area, reports on truck transportation were mixed.
“One person, whose company delivers directly to end users, reported a slight acceleration in first-quarter shipments from healthy fourth-quarter levels. In contrast, a nationwide freight hauler described shipments as "ho-hum" and noted that recent improvements in manufacturing indicators were not yet translating into increased truck freight,” according to the report.
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Shipments through Richmond area ports were robust, on balance, and increased at a modest pace despite some disruptions resulting from adverse weather events, the report said.
The typical January-February slowdown did not occur this year as activity remained elevated after the peak holiday season, one official suggested. Strong import volumes persisted in the region, and a few contacts told the regional Fed that exports had picked up.
The survey is based on reports gathered by regional Fed banks to give an anecdotal picture of the economy. The Fed releases its Beige Book report eight times a year. This report covered Feb. 17 through April 10 and was prepared by the Federal Reserve Bank of Richmond.
In the Atlanta area, railroad contacts said there was an uptick in total rail traffic. Ports cited robust growth in cargo overall, led by significant increases in tonnage of containerized and break bulk cargo. A majority of contacts in the region said they anticipate activity to remain the same over the next three to six months, according to the report.
In the St. Louis region, contacts reported transportation growth has been restrained because of difficulties hiring experienced workers. Despite a worker shortage, two trucking contacts told the Fed business is good enough to justify new equipment and increased hiring.
The New York region said businesses in the wholesale trade and transportation industries had steady to moderately growing activity, and those in transportation and warehousing have become less upbeat.
