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The Cass Freight Index Keeps Climbing

The Cass Freight Index is a measure of freight shipment expenditures nationwide.  As of June 9th it hit its highest since 2011.  Since the beginning of 2014 we have seen the most expenditures since the end of the recession.

What does this mean to you?

If you are a shipper, this means that rates are on the rise and capacity is shrinking.  The why’s of the decline in capacity is a perfect storm consisting of harsh winter weather, impacts felt from recent changes in hours of service and insurance rules as well as an uptick in manufacturing.  Inventories are low and production is ramping up.

If you are a broker, this means truckload carriers are getting picky and they are also starting to ask for rate increases.  They may not necessarily need you like they have in previous years.  If you haven’t taken the time to build strong relationships with your carrier partners and treated everything as a transaction you will need to evaluate and adjust your strategy going forward.

The market is definitely shifting.  Staying tuned into market changes and performance is key.  Change is imminent and that means pivoting to keep loads covered and service levels high.

For more information check out the article Cass Freight Index Increases, Shipment Volume Highest since 2011.  

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