Cass truckload rates jump 11.3% as freight shipments turn positive
Cass Information Systems recorded its largest annual increase in truckload linehaul rates since June 2022, while shipments ended a 42-month decline.
Truckload linehaul rates rose 11.3% year on year in August, according to Cass Information Systems, marking the 20th consecutive annual increase and the strongest gain since June 2022. The index, which excludes fuel and accessorial surcharges, increased 70 basis points from July.
Freight shipments recorded by Cass rose 2.1% year on year, ending 42 months of declines. Shipments increased 5.6% from July, or 5% on a seasonally adjusted basis.
The Cass linehaul index includes for-hire spot rates but is historically weighted towards contract rates. Cass said the larger contract market was continuing to adjust higher even as spot rates posted modest sequential declines.
Total freight expenditure rose 18.7% year on year and 5.8% from July. The increase reflected the positive shift in shipments as well as higher diesel prices, which were up 46% year on year and 10% from the previous month.
The dataset covers all domestic transport modes, with truckload accounting for more than half of shipments and less-than-truckload representing about 25%. Cass processes freight bills and says it handles about US$37 billion in freight payables annually.
Cass described the outlook for freight demand as modest, citing elevated risks to consumer spending. The report said the index could rise by approximately 1% year on year in September if normal seasonal patterns continue, while also assessing that the market bottom was probably in and restocking may be beginning.
