Cass Freight Index Reports Reaches 12 Years Low
Cass freight index is one of the decisive statistical data providers in the freight business. Freight business data allows truck owners and users to get a clear picture of the shape of their business in numbers. It would be fair to say that more shipments are good for the trucking industry. However, due to various reasons, the shipment data for the year has gone down compared to last year. This has caused an alarming situation where the data is still sounding recession bells. Various organizations use the Cass freight index to make plans for the future. Industry experts say that the data is expected to be more positive, by the second quarter of 2020.
Cass freight index analyses various aspects relating to the freight business. The data is one of the most accurate ones you can avail today. However, this year's data posits a grave point of concern for various truckers. The year on year comparison showed a steep decline in shipments from 2018. The percentage of drop is close to 8%. This is the steepest decline since the great recession of 2008-09. There are also concerns regarding the weakening of the shipping expenditure data. Shipping expenditure has gone down by almost 6.7 % compared to last year.
Tariffs implemented by the Trump administration is facing a lot of criticism. It is one of the main reasons behind the drop in shipment rates according to many experts. Besides this, the contractions in the manufacturing sector and the higher inventory rates are also problems leading to the drop in the YOY data. Financial experts do not see scope for improvement in 2020 unless the manufacturing industry picks up. The export sector is also facing many challenges due to added tariffs.
It remains to be seen what the first-quarter data will show in 2020. However, there is very little hope for growth because of the historical trend of shipping data dropping after the holiday season. Experts say that this data will drop more in January probably leading to an all-time low. Trucking associated business are also expected to feel the impact in this month.
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