Freight Shipment Volumes and Costs Down in July

North American shipment volumes and their related costs both trailed downward in July, keeping in line with the seasonal patterns of the last five years according to Cass Information Systems.

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.

The number of freight shipments dropped 1.6 percent from June to July, following a small 0.2 percent increase from May to June.

According to Cass, “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.” Freight expenditures fell 4.5 percent, only the second drop this year. This decline mirrored the similar sharp decline of 3.9 percent in July 2014.

Cass further noted that, “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. Capacity pressures have eased somewhat during this lull which has kept spot rates fairly flat.”

The anticipated increase of freight in August and September could lead to tight capacity for trucking, but trucking companies have not been standing firm on recent rate increases.

Category: Featured, General Update