Outlook for Freight Transportation Remains Strong for 2014

The freight logistics sector continued to strengthen in June, with both shipment volumes and expenditures rising once again according to the Cass Freight Index Report.

Both indices have increased every month since January. Although some measures of the overall economy indicate weakness, the freight sector has gained momentum throughout 2014.

June shipment volumes increased 2.4 percent to the highest level since November 2007, just before the recession.

Volumes were 6.0 percent higher than a year ago and are up 15.8 percent since the beginning of 2014.

Construction and manufacturing activities ‐ both drivers of demand for transportation services ‐ have been rising for several months. Thus, demand for transportation should remain strong for the next several months.

Despite record levels of new equipment orders, a lack of drivers is restricting growth in truck capacity.

In tonnage terms, truck volume has been rising consistently in 2014. Railroad carload and intermodal traffic have posted solid gains. The freight expenditures index rose 4.2 percent in June to 2.76, a record high.

June 2014 freight spending was 12.1 percent higher than a year ago and is up 15.6 percent since the beginning of 2014.

When you look at the truckload sector, the Cass Truckload Linehaul Index also shows that rates have been higher in each month of this year than last year.

Category: General Update