Cass Freight Index Improves in October, But Report Warns of ‘Turmoil’
October freight shipments rose 3.3% year-over year, slipping slightly from September, according to the latest Cass Freight Index, although it cited “turmoil” in freight markets with port congestion in key areas.
Shipments declined 0.9% from September, Cass Information Systems said in its monthly report, which was released Nov. 10. The index measures shipping activity in trucking and other transportation modes.
The group described the U.S. transportation system as being in “turmoil,” with cargo unable to move quickly from ports to end users, particularly on the West Coast.
“Port congestion, especially on the West Coast, is causing trouble for retailers attempting to stock their shelves for the season kickoff on Black Friday,” the report said. “All of this contributed to domestic freight shipment activity dipping again in October, while total freight spending rose slightly.”
Freight expenditures jumped 6.4% from a year ago, and edged 0.1% higher from September, Cass said.
“The best description for much of our freight transportation system is turmoil,” Cass said. “The congestion and slowdown at the ports deteriorated [in] October and has reached crisis proportions, particularly at the Port of Los Angeles/Long Beach, which handles more than 40% of all U.S. ocean imports and a disproportionately large percent of consumer goods.”
