Freight movements soared 6.9 percent in March, the first sizeable rise since August 2010, according to the March 2011 Cass Freight Index.
Volume was up for all modes in March, especially rail, which saw great improvement from winter weather slowdowns earlier in the year. Truck tonnage is continuing to grow, and capacity is beginning to tighten in many markets. Compared to the same period in 2010, March shipments were up 13.8 percent.
Freight payments registered another significant increase in March, up 6.3 percent, on the heels of the 12.5 percent rise in February. Total dollars spent on freight shipments in March 2011 are 33.6 percent higher than a year ago.
Now that the economy is strengthening - most economic indicators are heading upward - the freight industry is benefitting from the resurgence. Available capacity, especially in the trucking sector, is becoming less abundant as volumes increase, giving carriers room to start raising rates. The same growth in demand will also result in the trucking industry finding itself short of trucks and drivers by year's end. By the third quarter, the ability to determine rates will shift back into the hands of carriers and rates will increase quickly and steeply.
The Cass Freight Index represents monthly levels of shipment activity, in terms of volume of shipments and expenditures for freight shipments. Cass Information Systems processes more than $17 billion in annual freight payables on behalf of its clients. The Cass Freight Index is based upon the shipments of hundreds of Cass clients representing a broad spectrum of industries. The index uses January 1990 as its base month.
Volume was up for all modes in March, especially rail, which saw great improvement from winter weather slowdowns earlier in the year. Truck tonnage is continuing to grow, and capacity is beginning to tighten in many markets. Compared to the same period in 2010, March shipments were up 13.8 percent.
Freight payments registered another significant increase in March, up 6.3 percent, on the heels of the 12.5 percent rise in February. Total dollars spent on freight shipments in March 2011 are 33.6 percent higher than a year ago.
Now that the economy is strengthening - most economic indicators are heading upward - the freight industry is benefitting from the resurgence. Available capacity, especially in the trucking sector, is becoming less abundant as volumes increase, giving carriers room to start raising rates. The same growth in demand will also result in the trucking industry finding itself short of trucks and drivers by year's end. By the third quarter, the ability to determine rates will shift back into the hands of carriers and rates will increase quickly and steeply.
The Cass Freight Index represents monthly levels of shipment activity, in terms of volume of shipments and expenditures for freight shipments. Cass Information Systems processes more than $17 billion in annual freight payables on behalf of its clients. The Cass Freight Index is based upon the shipments of hundreds of Cass clients representing a broad spectrum of industries. The index uses January 1990 as its base month.
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