Cass Freight Index Rises in January
The Cass Freight Index, a measure of shipping activity in trucking and other transportation modes, increased in January as expenditures also rose, Cass Information Systems said.
Shipping increased 2.7% in January from the year before. Shipments declined 4.7% from December due in part to capacity woes at West Coast ports, the St. Louis-based firm said Feb. 10.
“2014 was the best year for the supply chain industry since the Great Recession,” Cass said in its report.
Freight expenditures increased 3% from last year but declined 5.7% from the prior month.
“This growth is good for business but will bring with it higher transportation costs. It is also good news for carriers, as most of the industry is in agreement that the ability to control rates is shifting back into the hands of carriers and that rate increases will be significant. However, sustained growth in 2015 will exacerbate the capacity problems experienced in 2014,” Cass said.
Bad weather, labor problems, fleet capacity issues and inadequate infrastructure are expected to create new bottlenecks and push up the cost to move freight, according to the report.
“Carriers do not currently have the necessary capacity, infrastructure and systems to efficiently move goods as freight volume rises in 2015,” the report said.
