March Performance Reflects Continued Challenges for Freight Industry

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Just caught the latest from the Cass Freight Index, and March didn't bring its usual spring surge for the freight industry. Shipments and expenses pretty much flatlined compared to February, missing the expected seasonal spike.

Here’s the scoop:

Shipments dipped 2.3% from February (after adjusting for seasonality), and we're looking at a 7.5% drop compared to last March.**

Freight expenses also slid down by 1.3% month-to-month and a whopping 18.5% year-over-year.** This points to a significant drop in freight rates by about 15.4% over the year.

But it’s not all gloom and doom:

The truckload linehaul index, which excludes fuel costs and additional fees, ticked up slightly by 0.2% month-to-month.** Although it's down by 4.7% year-over-year, this is the smallest drop since last December, hinting that rate declines might be stabilizing. In some cases, we’re even seeing contract rates begin to creep up.

Why does this matter?

If you’re in transportation and logistics, these figures are more than just numbers—they’re signals. The lack of a spring bump could indicate deeper economic shifts or changes in consumer demand, crucial for adjusting your business strategies.

• Missing the spring surge could signal broader economic issues that may impact business operations and strategic planning.

• With freight spend down significantly, it’s a good time to revisit pricing strategies and financial forecasts.

• Insights into truckload linehaul rates could help inform your contract negotiations and service offerings.

Our Take:

Despite the challenges, the slight stabilization in linehaul rates might be signaling a turn or at least a leveling out. With the industrial scene still lukewarm and truck capacity in oversupply, the logistics sector could be shifting slowly toward a balance between supply and demand.

Read more at Freight Waves