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. Brandon Fried, the Executive Director of the Airforwarders Association, said shifting trade policies, tariffs, and regulatory changes are narrowing transportation options for shippers. “Limited shipping options almost always lead to higher costs, costs that ultimately flow to American consumers,” he said.
Fried added that sudden policy changes, such as tariff adjustments or shifts in the de minimis threshold, send ripple effects across all freight modes. “When carriers or routes are no longer viable, shippers must pivot quickly, often to more expensive alternatives,” he explained.
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. “Air freight continues to offer flexibility in times of disruption, but the broader freight network is showing signs of strain,” Fried noted.
