Shipment volumes and payments were up for the fourth month in a row after a “dismal” January caused by harsh winter weather and West Coast port congestion, according to the latest Cass Freight Index Report.
North American shipment volumes and expenditures rose for the fourth month in a row in May 2015, according to the latest Cass Freight Index Report. The logistics payment solutions provider said both volumes and payments reached their highest level of the year after a “dismal” January caused by harsh winter weather and West Coast port congestion.
Overall shipment volumes rose 2.3 percent in May compared to April, but were still down 1.3 percent compared to May of 2014.
Intermodal rail shipments surpassed carload traffic for the first time as coal, nonmetallic minerals, forest products and other carload commodities declined. Cass noted both carloadings and intermodal loadings were trending down by the end of May, “signaling a slowdown in June,” which is historically a down month for freight movements.
Truck shipments decreased 3.7 percent in April 2015 (the latest month for which figures were available) and have been “seasawing” throughout the year, falling in February and then rising in March.
Transportation employment was up in April, with the majority of the increase coming via jobs in truck driving, despite the April jobs report being the lowest so far this year, according to the report.
Freight expenditures grew 1.5 percent in May, following increases of 1.6 percent in April, 1 percent in March and 4.3 percent in February. Payments were still 4.2 percent lower than in May of 2014, but are up a total of 2.6 percent since the beginning of 2015. The report noted growth in freight spending is slower than in shipment volumes, which indicates a lack of change in rates. “Despite widespread reports of tightening capacity, rates remain stubbornly immovable,” said Cass.
Cass noted freight growth has been strong despite negative growth in U.S. GDP in the beginning of 2015. “Freight shipments are mirroring the rise in 2014, without the spring stumbles we have experienced in previous years,” said Cass. “The overall economy is taking more time to ratchet back up from the dismal start.”
The Cass Freight Index is based on domestic freight shipments of hundreds of the company’s clients across a wide variety of industries. Cass Information Systems processes more than $26 billion in annual freight payables.
North American freight volumes continue to grow in May
