Subscribe to our free, weekly email newsletter!


Trucking news: Cass Freight Index is up in September

By Jeff Berman, Group News Editor
October 04, 2010

Even though the economy remains stuck in neutral, it appears that the trucking market may be gaining some sustained momentum, based on the September edition of the Cass Information Systems Freight Index.

For the second straight month, the index, which measures the number of shipments and expenditures that are processed through Cass’s account payable systems, showed growth, and has been up in six of the last seven months.

September shipments at 1.116 were 1.9 percent higher than August’s 1.095 and have been over the 1.0 mark for five straight months, with May marking the first time shipments topped 1.0 since November 2008.

September shipment expenditures at 2.031 were 2.9 percent higher than September’s 1.971 and 9.8 percent higher than July’s 1.832 and 23.4 percent higher than September 2009’s 1.556.

Many trucking industry executives and analysts consider the Cass Freight Index as an accurate barometer of freight volumes and market conditions, with Credit Suisse analyst Chris Ceraso stating in research notes that the Cass Freight Index sometimes leads the American Trucking Associations (ATA) tonnage index at turning points, which lends to the value of the Cass Freight Index.

The ATA recently reported that its seasonally-adjusted August tonnage index was down from July and up year-over-year.

As LM has reported, in the first half of 2010, many shippers, carriers and analysts said they were optimistic about the trucking market, especially when comparing it to 2009. But since then there have been various economic reports, including today’s federal government report that second quarter GDP growth fell to 1.7 percent from the first quarter, and others which indicate the recovery is slowing down.

Some other signs of a slowing economy are also evident, with unemployment still high, retail sales down, and consumer confidence falling. These factors all have the potential to bring tonnage growth down in the coming months.

And at last week’s Council of Supply Chain Management Professionals Annual Conference in San Diego many shippers and carriers indicated that there is an underlying sense of caution in play when assessing trucking volumes and where they may be heading in the coming months.

One recurring theme heard from CSCMP attendees was that whatever recovery is occurring may now be led by manufacturing, rather than consumer spending, which typically accounts for 70 percent of all economic activity.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Getting items ordered online to your home on a same-day basis is as important or relevant as it needs to be, and it depends on things like the type of products being ordered and its relative urgency as well. This was put into better perspective for me during a recent conversation I had with Dr. Victor Allis, CEO of Quintiq, a supply chain vendor specializing in a single optimization and planning platform.

Diesel prices dropped for the third straight week, with the average price per gallon seeing a 2.5 percent decline to $3.869 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Seasonally-adjusted (SA) for-hire truck tonnage in June dropped 0.8 percent on the heels of a revised 0.9 percent (from 1.0 percent) increase in May and was up 2.3 percent annually.

Even as Congress was putting the finishing touches on a 10-month short-term funding extension to the federal aid highway bill that temporarily averts a funding crisis, Transportation Secretary Anthony Foxx was ripping the measure as a short-term “gimmick” that once again fails to adequately fund U.S. infrastructure needs in the long run.

ISI is comprised of Integrated Services, ISI Logistics and ISI Logistics South and is focused on the warehousing and transportation needs of automotive shippers. RRTS said that in 2013, Integrated Services generated revenues of approximately $21 million adding that Integrated Services is expected to be accretive to Roadrunner’s earnings in 2014.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA