August freight shipments and expenditures see declines, reports Cass Freight Index

August freight shipment and expenditure readings were mostly mixed, according to the new edition of the Cass Freight Index, which was recently issued by Cass Information Systems. 

Many freight transportation and logistics executives and analysts consider the Cass Freight Index to be the most accurate barometer of freight volumes and market conditions, with many analysts noting 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.

What’s more, the Cass Transportation Index accurately measure changes in North American freight activity and costs based on $44 billion in paid freight expenses for the Cass customer base of hundreds of large shippers.  

August’s shipment reading, at 1.121, fell 1.9% annually, slightly higher than July’s 1.110 and not as steep as 6.0% and 5.8% annual declines seen in June and May, respectively. Shipments increased 1.0% sequentially, following a 3.0% gain from June to July, and also were up 1.0% sequentially on a seasonally-adjusted basis. Shipments were off sequentially in August for the fifth time in the last six months.

“These were the smallest declines in 18 months as gods demand continues to grow slowly, and slowing capacity additions reduce the pressure on for-hire shipments,” wrote Tim Denoyer, the report’s author and ACT Research vice president and senior analyst, in the report.

August expenditures, at 3.147, fell 9.0% annually, steeper than declines seen in July and June, at -6.2% and -0.7%, respectively, while falling 1.3% sequentially on a seasonally-adjusted basis.

“With shipments up 1.0% month-over-month, we infer the 2.0% month-over-month decline in expenditures included a month-over-month decline of 3.0% in rates in August,” wrote Denoyer. “The expenditures component of the Cass Freight Index fell 19% in 2023, after a record 38% surge in 2021 and another 23% increase in 2022. It declined another 16% in 1H’24, and assuming normal seasonal patterns from here, will decline 11%-12% this year.”