The freight transportation sector slowed in July, following a seasonal trend, with both freight shipments and freight payments down 3.9 percent from the previous month in the latest Cass Freight Index. (Slide 1)
The drop was consistent with previous summers’ drops, so should not be seen as the start of a decline in freight for the second half of 2014, notes Rosalyn Wilson, a supply chain expert and senior business analyst with Parsons.
After five months of increases, shipment volumes decreased 3.9 percent in July (Slide 2), still coming in 4.2 percent higher than shipment activity a year ago.
July freight expenditures index fell in tandem with freight shipments, dropping 3.9 percent from June figures. July payments for freight are 6.7 percent higher than the corresponding month a year ago.
“There was not much change in rates in July as capacity loosened with the drop in shipments,” Wilson adds. “That said, in recent weeks LTL carriers have been reporting that their pricing is starting to strengthen, a sign that across-the-board price hikes could be on the horizon.”
Most recently, spot truckload load volume (Slide 3) has been stable while van and refrigerated rates slipped during the week ending August 9, according to DAT Solutions, which operates the DAT network of load boards.
