Freight Shipments Ease as Spending Declines
Growth in freight shipments slowed in March, according to the latest Cass Freight Index Report, while freight spending turned negative – but a longer-term view of cargo movements and the overall economy appears at least somewhat brighter.


Growth in freight shipments slowed in March, according to the latest Cass Freight Index Report, while freight spending turned negative – but a longer-term view of cargo movements and the overall economy appears at least somewhat brighter.
The 1.4% increase in shipments from the month before follows an 8.3% jump in February, putting the shipments index at a reading of 1.070. While this is the highest level since November, it is down 1.5% from March 2015.
March shipments have grown at a slower pace than each February for the last couple of years, so this latest news not unexpected, according to Rosalyn Wilson, supply chain industry analyst and founder and president of the consulting practice FreightMatters, who provides analysis for the report.
“The March 2016 index is still 6.2% lower than the December 2015 index, indicating that the plummet in January is going to take quite some time to dig out of,” she said. “On an average basis, the first quarter of 2016 was 3% lower than the same period in 2015.”
The good news, she said, is that an indicator of U.S. manufacturing in March showed growth for the first time since last August, signaling the sector may finally be recovering from its slump. The bad news is, business inventories remain high and will likely constrain future growth. While Wilson expects there will be manufacturing growth in April, she expects “sluggish but sustained growth in freight” later on.
Meantime, Cass expenditures for freight dropped 1% in March, taking back a portion of the 6.3% increase from the month before and putting the measure at 2.287, down 7% from a year earlier.
“Truck rate changes have been extremely moderate and most shippers are not expecting much of a change in the first half of 2016,” said Wilson.
The reason is capacity in any freight transportation mode isn’t a problem and that’s keeping spot market freight costs down. However, she notes tariff rates on some goods were set to increase in mid-April, and diesel prices are creeping back up, rising 4.6% in last month.
Overall, Wilson said some measures show the economy appears to be in good shape, with strong employment figures for March, plus improvements in hourly wages, housing starts, home sales and exports, with inflation remaining low.
“On the downside, consumer spending has been sluggish, business investment has been weak, unemployment went from 4.9% to 5% in March, new building permits declined in April, the dollar remains robust in world markets, hurting our export prices and, finally, the Federal Reserve is divided on the next course of action [on whether to raise interest rates],” she said. “Global economic conditions are still weak and fragile in some economies, adding a level of uncertainty to the U.S. economy."
According to Wilson, 2016 is turning out to be difficult to predict, but at least “anecdotally, however, many players in the supply chain remain cautiously optimistic for the rest of the year.”
More Fleet Management

Jamie Hagen Gets Real About Running a Small Fleet in an Uncertain Economy
Small fleet owner Jamie Hagen says new legal risks, volatile fuel prices, and a changing freight market are forcing small carriers to rethink how they operate -- and what they can afford.
Read More →Jamie Hagen Gets Real About Freight, Fuel Prices, Safety, and Small-Fleet Survival
Running a small trucking fleet right now isn’t easy, especially right now. And Jamie Hagen doesn’t sugarcoat it.
Read More →Jamie Hagen Gets Real About Freight, Fuel Prices, Safety, and Small-Fleet Survival
Running a small trucking fleet right now isn’t easy, especially right now. And Jamie Hagen doesn’t sugarcoat it.
Read More →
Data Lock‑In or Integration Lock‑Out?
Data fragmentation is costing dealerships, OEMs, fleets, and upfitters millions. Here’s why interoperability may be the fix the trucking industry needs.
Read More →What Trucking Fleets and Brokers Need to Know About This Supreme Court Case
In May, the U.S. Supreme Court ruled that freight brokers can be held liable for damages if a truck they have contracted with is involved in an accident. Listen as this transportation attorney breaks down the ruling and its implications for the trucking industry.
Read More →
The Trucking Industry’s Threat Intelligence Gap
The trucking industry has no shortage of cybersecurity reports and cargo crime statistics. What it lacks is timely, operational intelligence that fleets can actually use.
Read More →
Truck Crash Rates Are Down. So Why Do Insurance Costs Keep Rising?
ATRI’s latest research points to litigation, social inflation, and soaring claims costs as key drivers behind record-high liability premiums for trucking fleets. But there are things motor carriers can do.
Read More →
ATA Truck Tonnage Holds Steady in April at Highest Levels Since 2022
ATA’s For-Hire Truck Tonnage Index was unchanged in April after a strong March gain, with freight volumes remaining at their highest levels since late 2022.
Read More →
Fleetworthy Launches Connected Platform for Fleet Readiness Across Safety and Compliance, Toll Management, and Weigh Station Bypass
Fleetworthy has unveiled three major product launches it says mark a new era in fleet readiness.
Read More →Behind the SCOTUS Broker Ruling Part 1
Transportation attorney Greg Feary breaks down the recent Supreme Court decision that brokers can be held liable for damages in truck accidents and what it means for the trucking industry going forward.
Read More →
