Freight Shipments, Rates Post Increases; Spot Market Falls

Two separate reports show where freight activity and rates are headed in Canada and the U.S., with one decidedly better than the other, at least in the short term.

According to the Cass Freight Index, the number of North American freight shipments jumped 4.2% in April from March but the level is still 2.5% lower than the same month a year ago.

This put the shipments index at 1.132, its best reading since November.

Freight expenditures increased 1.6% in April from the month before but is 4.7% lower than the same month last year.

Despite the increase, the expenditures index fell to 2.499, but this is the second highest reading of the year.

The Cass Freight Index measures trends in North American shipping activity based on U.S.$26 billion in paid freight expenses in all freight modes for Cass Information Systems’ customer base of hundreds of large shippers.

Meantime, a separate report, was less glowing, showing spot market freight volume Canada and the U.S. in April followed a typical seasonal pattern, declining 10% compared to March, according to the DAT North American Freight Index.

Year over year, freight availability declined 27% in March compared to the extraordinary volume of 2014.

When compared to 2013 and all previous years, April 2015 volume exceeded same-month totals.

By equipment type, freight volume declined 23% for vans and 25% for refrigerated trailers compared to March, but flatbed freight availability increased 18% month-over-month.

Rates by equipment type on the spot market followed the trends in volume, slipping 2.5% for vans and 0.5% for reefers, while flatbed rates rose 0.5%, compared to March.

Compared to April 2014, freight volume declined for all equipment types; down 18% for vans, 4.9% for reefers and 38% for flatbeds.

While line-haul rates were up, carriers received a lower total spot rate due to declining fuel prices and associated surcharges, according to DAT.

The total rate declined on both a month-over-month and year-over-year basis for all equipment types.

The DAT North American Freight Index reflects spot market freight availability on the DAT Solutions network of load boards in Canada and the U.S.