Freight Shipment Volumes Down

The number of freight shipments and the dollars spent on freight have been in a typical seasonal decline since September 2015, according to the Cass Freight Index.

The closely watched shipment index opened the year just 0.2 percent below last January, while the expenditures index is down 1.4 percent.

The economy grew much more slowly in the second half of 2015, so January freight shipments are down 11.6 percent and dollars spent are down 11.5 percent from the June 2015 high. The declines in the fourth quarter and again in January are normal seasonal trends and are not necessarily signs of further weakening.

Year over year, freight shipments were essentially flat from last year, just 0.2 percent lower than last January.

Sequentially, January was the fourth month in a row that the number of freight shipments declined.

Truck tonnage eroded, along with rail, in January, but not to the same extent as railroads. Carriers are reporting that capacity and demand are very well matched right now.

The freight payment index fell 1.9 percent in January (from December), and is 1.4 percent below the January figure in 2015. The decrease in January 2016 is much less than the December to January drops of 5.7 percent in January 2015 and 5.1 percent in January 2014. The decrease can be mainly accounted for by the drop in the number of shipments and the mix of commodities moved. Generally speaking, rates were stable in January because available capacity was not a problem.

Category: Featured