The U.S. Airforwarders Association (AfA) has warned that slowing freight volumes, shown in new U.S. Department of Transportation (DOT) data, signal rising challenges for shippers facing fewer transportation choices and higher supply chain costs.
According to the DOT’s Freight Transportation Services Index (TSI), freight activity fell by -0.4% in June month-over-month, and -0.5% year-over-year. As reported by the American Journal of Transportation, Brandon Fried, the Executive Director of the Airforwarders Association, said shifting trade policies, tariffs, and regulatory changes are narrowing transportation options for shippers.
Fried added that sudden policy changes, such as tariff adjustments or shifts in the de minimis threshold, send ripple effects across all freight modes and shippers would need to “pivot quickly, often to more expensive alternatives”.
Data from the U.S. Bureau of Transportation Statistics show that June’s decline was mainly due to reduced volumes in rail intermodal, rail carload, and trucking volumes. In contrast, air freight and waterborne freight saw slight increases, while pipeline activity was unchanged.