U.S. Shipper Spending Surges 32.1% Amid Rising Fuel Costs

U.S. shippers experienced a 32.1% surge in third-quarter spending compared to a year ago, marking the largest annual increase since 2021. According to the U.S. Bank Freight Payment Index, this spike occurred despite nearly flat shipment volumes, which grew only 0.4% quarter-over-quarter and 0.5% year-over-year.

The spending increase is driven by tightened carrier capacity, stronger carrier pricing power, and rising diesel prices. National diesel costs exceeded $6.50 per gallon, peaking at $8.25 in California. Regional trends varied significantly, with the Southeast recording the strongest quarterly shipment growth at 4.7%, while the West saw a 3.1% decline.

The Southwest faced the most severe financial impact with a 51.6% annual spending increase, a trend attributed to driver shortages caused by enforcement actions. Industry analysts noted that cost pressures remain widespread even in regions where freight volumes are flat or declining.