Cass Freight Index Reveals Decline in U.S. Freight Shipments and Expenditures

What's Happening?

The Cass Freight Index for July indicates a decline in freight shipments and expenditures. Shipments fell by 6.9% annually and 1.8% compared to June, with a seasonally-adjusted decrease of 1.7%. Expenditures rose by 0.4% annually but decreased by 1.5% from June. The report attributes the decline in shipments to tariffs impacting demand, with North American volumes trending towards further declines in 2025. Despite the drop in shipments, expenditures have risen due to higher rates and changing modal mixes, with more truckloads and fewer less-than-truckload shipments.

Why It's Important?

The decline in freight shipments reflects broader economic challenges, including tariff impacts and shifting demand patterns. Rising expenditures, despite lower shipment volumes, suggest increased costs for shippers, potentially affecting profitability and pricing strategies. The changing modal mix indicates a shift in transportation preferences, which could influence logistics planning and investment decisions. The data serves as a critical indicator for stakeholders in the freight and logistics sectors, highlighting areas of concern and potential opportunities for adaptation.

What's Next?

Freight and logistics companies may need to reassess their strategies to address declining shipment volumes and rising costs. This could involve optimizing supply chains, exploring alternative transportation modes, or negotiating better rates. The ongoing tariff situation may prompt further adjustments in trade and logistics practices. Stakeholders will likely monitor economic indicators closely to anticipate future trends and make informed decisions.