The loss of SNAP benefits could slow the freight market

The ongoing Federal Government shutdown threatens to disrupt the freight industry, as millions of Americans' SNAP benefits hang in the balance. With consumer spending on essentials like groceries fueling demand for trucking and distribution, a drop in SNAP benefits could lead to a significant reduction in spending from lower-income households, causing a ripple effect throughout the supply chain. While local deliveries remain steady, long-haul trucking is down by one third, raising concerns about the health of industries like manufacturing, housing, and autos. However, there's a silver lining for trucking companies, as capacity is leaving the market faster than volumes are dropping, potentially signaling the end of a freight recession. But for freight brokers, the outlook is grim, as they rely on numerous shipments and last-minute freight to make their money. The coming days are crucial for everyone connected to the supply chain, as the shutdown's impact on the freight industry continues to unfold.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.