Decline in Freight Shipments Observed in August
In the world of freight transportation, recent data from Cass Information Systems paints a picture of a market in transition.
August marked the eighth consecutive year-over-year increase for the Cass' TL linehaul index, indicating a steady growth in truckload (TL) freight shipments. However, the index decreased by 1.8% sequentially, suggesting a slight slowdown compared to July. The index is expected to see a "small increase" this year, according to Cass.
Meanwhile, the freight expenditures index, which measures total freight spend including fuel, showed a different trend. The index was down 0.4% year-over-year in August, marking the first yearly decline in five months. On a two-year-stacked comparison, the declines widened to 9.4% in August.
The decrease in the freight expenditures index can be attributed to a drop in freight volumes. In August, total freight volumes decreased by 1.5% from July and a significant 9.3% year-over-year. Less-than-truckload (LTL) shipments were the primary reason for the decline.
Despite the decrease in volumes, actual freight rates were up 9.8% year-over-year in August. The mix shift from LTL to TL driving the increase in average rate.
The report also points to weak demand, attributed to the trade war, as a factor keeping the supply side from tightening. However, it suggests that tighter capacity due to lower heavy vehicle production and lost manufacturing jobs could drive freight back to the for-hire market eventually.
The report expresses a cautious outlook on freight demand as the economy absorbs the effects of tariffs over the next several months. It's worth noting that several publicly traded LTL carriers reported tonnage declines earlier this month.
Cass processes $36 billion in freight payables annually on behalf of customers, providing a comprehensive view of the freight market. The company or person with the largest decline in freight shipping volumes in August, as reported in the Cass Information Systems report, is not specified in publicly available summaries.
As we move into September, Cass predicts a 7% year-over-year decline in freight shipments. This could potentially lead to lost freight returning to the for-hire market, as a reduction in day cab orders with the OEMs suggests private fleets are contracting.
In summary, while the Cass' TL linehaul index showed a slight increase, the overall freight market is experiencing a decrease in volumes and expenditures. The report suggests a cautious outlook on freight demand, with potential implications for the for-hire market in the coming months.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Budget discrepancy jeopardizes highway projects' financial support
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
- Feeling disoriented or perplexed.
