Cass Freight Index Shows Decline in July Shipping Activity
The Cass Freight Index, a measure of shipping activity in trucking and other transportation modes, declined in July, keeping in line with seasonal patterns, Cass Information Systems said.
Shipping declined 1.1% in July from the year before. The month is traditionally slow as it lies between the surges of back-to-school shopping and the holidays, the St. Louis-based firm said Aug 12.
“Although both indexes are below last year’s levels at this time, they compare quite favorably with prior years. There should be an element of caution when comparing 2015 results to 2014 since last year was the best year the freight sector has experienced since the recession,” Cass said in its report.
Freight expenditures declined 6.4% from last year and fell 4.5% from the prior month, only the second drop this year.
“Although the decrease in freight expenditures was larger than the decrease in the number of shipments, the trend in lower tonnage indicates that rates are fairly stable," the report said.
“With new orders down in April and May — having slowed because inventories were high and the summer months tend to see retail sales to make room for fall and holiday stock — lower shipping volumes naturally followed,” Cass said.
