Cass shipment index rises in September
Cass freight index rises in September
One component of monthly shipping index hits 30-month high.
A key monthly index of U.S. shipping activity rose in September, with one sub-component reaching a level not seen since May 2008, according to the firm publishing the index.
The index, published by freight audit and payment firm Cass Information Systems, is based on the expenditures and shipments of Cass's clients. In September, the freight expenditure index came in at 2.031, up from 1.97 in August and the first time the expenditures index has surpassed the 2.00 mark since the spring of 2008, before the financial crisis hit with full force.
The shipment index reached 1.116, up from 1.097 in August, Cass said.
The shipment index grew 15.5 percent year over year, while the expenditures index increased 30.5 percent over September 2009. Both increases were slightly below the year-over-year gains the index marked in August.
Thomas R. Wadewitz, transport analyst at JPMorgan Chase, said the sequential gains in the shipment index reflect continued demand for trucking services leading into peak season. However, Wadewitz cautioned that carrier executives have recently been expressing caution over demand trends in September.
As for expenditures, the sequential gains indicate an environment of "flat to modestly improving" pricing outside of fuel surcharges, Wadewitz said. That's because expenditures have been growing at a faster clip than shipments while fuel prices have remained relatively stable, he said.
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Executive Editor - News
Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
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