Freight Shipment Index Beats Expectations

Although the economy continued to be sluggish in November, the Cass Information Systems’ Freight Shipments Index was stronger than expected.

That said, freight payments decreased, as capacity to carry was abundant.

Black Friday sales— combined with Cyber Monday sales—were very strong this year as customers took advantage of reduced prices and discounts, placing orders before the cost of shipping goes up for the remainder of the holiday period.

And now, the facts: The number of freight shipments remained flat from October. This is the first time in five years that shipments did not drop off in November.

At the same time, the Freight Shipments Index now sits at the lowest November level since October 2011. The Association of American Railroads reported a drop of 7.4 and 6.0 percent in carloads carried and intermodal, respectively.  Much of the carload loss is due to drops in bulk commodities such as coal, petroleum products and metallic ores.

For November 2015, combined U.S. carload and intermodal originations were 2,065,767, down 6 percent year over year.

In terms of over-the-road freight, The American Trucking Associations reported that October truck tonnage index rose 1.9 percent, a reflection of the movement of inventory from warehouses and distribution centers to sales outlets readying for November holiday sales. Imports have slowed down considerably as retailers and wholesalers have ample supply for the holiday season.

Category: Featured, General Update