We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » Shipping index shows steep sequential decline in volumes
newsworthy

Shipping index shows steep sequential decline in volumes

November 7, 2011
Mark B. Solomon
No Comments

A monthly index of shipping activity released on Nov. 4, 2011, showed steeper-than-expected sequential volume declines in October. It also revealed a slower rate of decline in shipping expenditures, indicating that rate increases imposed by truckers throughout 2011 appear to be sticking.

The index, compiled by the freight auditing and payment firm Cass Information Systems Inc., measures shipments and expenditures of hundreds of Cass' clients, who collectively spend about $17 billion on transportation services annually. According to the index, shipment volumes in October fell 10 percent from September's figures but were up 2 percent year-over-year.

For the past 10 years, the index has reported declines in shipment volumes from September to October. However, the pace of the decline compared to the previous two years surprised Cass' analysts. In 2010 and 2009, shipment volumes from September to October fell 5.2 percent and 4.7 percent, respectively.

Although spending on freight fell 4 percent month-to-month, it was up 16.1 percent from October 2010 levels, according to the index. The year-over-year increase is significant considering that the weight of the average shipment has risen by only 1 percent over that time, according to Cass.

The slow pace of the sequential decline in expenditures relative to the drop in volume, combined with the double-digit gains over 2010, show that motor carriers have been able to raise rates but only enough to cover increases in their operating costs.

Rosalyn Wilson, an analyst at the Vienna, Va.-based consultancy Delcan Corp. and the index's primary author, has said throughout the year that truck rate increases will not lead to greater profitability for the carriers, but will instead just help them meet rising expenses.

In a statement accompanying the release of the October data, Wilson said Cass' shipper clients are cautiously optimistic, believing that the "worst is likely over" but choosing to be very conservative "until the footing for growth becomes a little more solid."

Transportation Trucking Business Management & Finance
KEYWORDS Cass Information Systems
  • Related Articles

    International shipping confidence index shows signs of pulse in January

    Cass freight index shows growth in September

    Port of Oakland posts steep drop in January volumes; labor impasse blamed

Marksolomon
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.

Recent Articles by Mark Solomon

Coming together for road safety: interview with Joshua Girard

Off the rails

Freight rate spikes shaking up the C-suite

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • Autonomous trucking firm Plus prepares its tech for mass launch in China in 2021

  • The Home Depot opens automated DC in greater Atlanta

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

Now Playing on DCV-TV

Jlt procure rugged devices thumb

What it takes to procure the right rugged devices for your warehouse

DCV-TV 4: Viewer Contributed
Procuring new rugged devices for your warehouse is often a big decision and a significant investment. It needs careful planning and consideration. It involves more than ticking boxes on a spec sheet. It includes testing and getting employee buy in. And it's about finding a partner that can work with you to deploy...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing