US Transportation Activity Rises Moderately, Fed Says
Transportation activity in the United States rose moderately in late February and March, with several areas of the country reporting increases in freight volumes, the Federal Reserve reported.
National economic activity continued to expand, with most areas saying economic growth was in the modest to moderate range. Contacts expected growth would remain in that range going forward, the Fed said in its Beige Book report released April 13.
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. 22 through April 7 and was prepared by the Federal Reserve Bank of Chicago.
In contrast to the March 2 Beige Book, when Fed district banks said prices were “generally flat,” the report indicated that “overall, prices increased modestly across the majority of districts, and input cost pressures continued to ease” amid cheap energy bills, Bloomberg News reported.
Trucking firms in the Richmond area reported stable to stronger growth in demand in recent weeks. Port contacts in the Richmond District cited record import volumes in February that moderated in March, as well as a modest rise in exports in part because of stronger shipments of agricultural and forest products, according to the report.
In the Atlanta District, trucking contacts cited notable increases in overall tonnage during the reporting period. Port contacts cited continued growth but rail cargo in the area continued to decline, the Fed said.
In the St. Louis region, contacts in the trucking industry reported an increase in revenue and reduced costs from low diesel prices, and some in the industry have announced expansion plans.
The Cleveland area reported freight volume expanded slightly in late February and March, though some of the increase was seasonal.
“Our contacts anticipate a modest expansion in volume during the upcoming months. Overcapacity is forcing some haulers to lower shipping rates. Diesel fuel surcharges have been largely eliminated,” the Fed said in the report.
However, compared to a year earlier, freight volume is lower in the Cleveland District due to weakness in the energy and steel industries and lower demand for industrial goods, the report said.
San Francisco noted an increase in cargo volumes and the Kansas City District said transportation and wholesale trade activity had increased sharply.
Contacts in the Dallas District told the Fed ongoing weakness in the energy and steel sectors continued to weigh on freight volumes.
