Transportation Activity Steady at Start of Year, Fed Says
Transportation activity was steady to somewhat higher across the nation from the end of last year to mid-February, according to a Federal Reserve report.
The Richmond region reported recent softer demand and in the New York area transportation industries reported more modest improvement but remain widely optimistic about future business conditions, the Fed said in its Beige Book report, released March 1.
Executives at trucking firms in the Richmond District told Federal Reserve officials that demand for freight hauling services was somewhat softer in recent weeks, but one contact noted that expectations were for an improvement in the second half of the year. A Richmond area railroad industry source said capacity had begun to tighten in freight transportation.
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 Jan. 9 through Feb. 17 and was prepared by the Federal Reserve Bank of New York.
Port officials in the Richmond District reported "off the charts," and another had its best month ever for loaded containers.
“Imports of furniture, building supplies, and auto parts were strong. Auto imports remained at high levels, but exports of used cars to oil producing regions softened, which was attributed to falling oil prices in those destinations. Exports of construction and agricultural equipment remained weak,” according to the report.
A transportation analyst in the Philadelphia region reported that truck freight was growing a bit better than the prior period, as its market tightened at year-end. Spot rates for hiring trucks had increased, so contract rates will likely follow, according to the analyst, the Fed said in its report.
In the Atlanta area, trucking freight volumes declined further since the previous report, and carriers said they are working to reduce capacity to improve pricing. Atlanta District ports cited continued growth but rail contacts told officials’ intermodal traffic was down slightly and total traffic was flat compared with the prior year following several months of declines.
Transportation services firms in the Dallas District said cargo volume was mixed but most services firms noted improved outlooks. Some firms expressed concern about “uncertainty surrounding the new administration's potential policy changes” and the impact of those changes.
