Freight Volumes Rise, But Rates Don’t Keep Pace North
American freight volumes bounced back in August from a normal July dip, but did not cause a similar increase in freight spending.
Compared to July, spending was down slightly. August shipment volume increased 2.3 percent, reversing some of last month’s 3.9 percent slide.
August shipments are 4.9 percent higher than a year ago and are up 13.9 percent in 2014.
From a broader economic standpoint, the Institute for Supply Management’s August PMI® rose 3.3 percent to 59, the highest level since March 2011’s 59.1, indicating that domestic manufacturing is continuing to gain strength. Driving this PMI increase were new orders, increasing by 5.2 percent, and order backlog which climbed 5.1 percent.
Also, 14 out of 16 product categories tracked by the PMI registered a growth in new orders. Inventories have been contracting, but are now showing signs of rising again.
The August freight expenditures index dipped 0.3 percent as rates remain stubbornly flat.
While capacity was not as tight as expected – and even spot rates weakened a bit during the month – August 2014 expenditures are 8.0 percent higher than the corresponding month a year ago and 10.8 percent higher than December 2013.
Source: Cass Information Systems
Category: General Update
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