Freight Shipment in November Tops Previous Two Years

North American freight shipment volume continued on a downward path in November ‐ not unexpected, as this is the same weak year‐end movement observed for the last three years, according to the Cass Freight Index Report.

Stronger–than-expected manufacturing activity and shipments of seasonal goods offset a general slowing of freight
movements to temper the drop in shipment levels.

Expenditures rose just slightly, largely because of a surge in spot market rates the last week of the month.

The November shipment index is 1.1 percent higher than a year ago and 4.6 percent higher than November 2011. On a month‐to‐month basis, November’s 1.0 percent drop from October was an improvement on the 3.5 percent drop the previous month. The Institute for Supply Management’s PMI index for production rose 3.3 percent in November, largely on the strength of export production.

Export goods shipments and the seasonal jump in food and beverage shipments were not strong enough to overcome the drop in shipments for items such as apparel, appliances and electronics.

The National Retail Federation reported that Thanksgiving/Black Friday sales fell 2.7 percent, the first drop in seven years. Online sales were brisk, however, which bolstered small package shipments at the end of the month.

In freight:

• The weekly railroad traffic reports from the Association of American Railroads showed carload shipments up 2.7 percent, but inconsistently – up two weeks and down two weeks
• Meanwhile, intermodal shipments slowed over the month, posting a 1.0 percent year‐over‐year gain in November after rising 2.5 percent in October
• Truck tonnage fell 3.7 percent in October (the latest figure available) according to the American Trucking Association
• Spot market shipment volume fell off substantially in November across the board
• Refrigerated loads surged in the final week of the month due to the Thanksgiving holiday

Tags: Freight shipment

Category: General Update