The U.S. truck freight market saw a decline in the third quarter, with national shipment volumes falling 2.9% and shipper spending increasing by 2%. Carriers are leaving the market despite higher rates being paid for freight. Freight volumes are negatively impacted by tariffs, with the goods economy slowing.

Despite higher rates, both freight shipments and spend indexes fell compared to last year, with shipments down 10.7% and spend down 1.7%. Tariffs are hurting factory output, as the U.S. already has a substantial manufacturing base. Manufacturing indicators show little growth or decline, impacting freight for trucking.

Regulatory changes have affected the market, with stricter enforcement of English-language proficiency rules resulting in more than 5,000 drivers being deemed out of service for violations. Different regions show varying levels of recovery, with the Northeast and West leading in freight growth, while the Southwest, Southeast, and Midwest face ongoing challenges.

The Northeast and West regions show strong performance, with both shipments and spending increasing. International trade plays a key role in growth, with the Port of Los Angeles processing a high volume of containers. In contrast, the Southwest region experiences a significant decrease in freight levels despite increased spending, indicating capacity constraints.

The Midwest reports declines in shipments and spending, attributed to factors like flat consumer spending and reduced cross-border freight. The Southeast region continues to struggle, with decreased shipments and spending. Despite some spending increases, volumes remain below previous levels.

Read more at Yahoo Finance: U.S. freight market reverses gains in third quarter as volumes fall