Fed Sees Some Upturns in Trucking Business
Federal Reserve districts reported some regional upturns in the trucking business, the Fed said in its latest “beige book” survey of economic conditions, released Wednesday.
Trucking volumes increased over the past month in the Dallas region, and growth is expected to pick up this year to accommodate shipments that railroads are unable to handle because of limited capacity, the Fed said.
Dallas reported strong railroad cargo and trucking volumes, while the Atlanta district reported weak freight transport demand. Labor markets remain “very tight” in Dallas, with truck drivers among the professions that firms were having difficulty filling, the Fed said.
In Cleveland, “although overall demand for trucking and shipping services remains soft, half our contacts reported a slight uptick since mid-February,” the Fed said. Many companies reported pushing up their purchasing timetables for truck engines to last year due to the new EPA regulations that took effect in January.
Atlanta and Chicago reported strong demand for more fuel-efficient vehicles, while truck sales were weak in Atlanta and Kansas City.
One positive note for the truck producers has been increasing export demand, especially from Australia and Mexico, the report said.
The latest beige book survey, which the Fed releases eight times a year, was based on information collected from Feb. 27 through April 15.
