Cass Information Systems released data showing that the freight industry is advancing at a scorching pace during the month of May. According to Freightwaves, the Cass Freight Index logged the highest-ever growth rates in the shipments and expenditures components of the dataset’s more than 30-year history.
In the May report, it shows the shipments index jumped 35.3% higher year-over-year. While these comparisons reflect year-ago demand weakness, as large parts of the nation and economy remained under lockdown, the index recorded the highest reading since May 2018.
In the current freight cycle, the two-year stacked comp also turned positive, which according to Freightwaves, is up 3.3% from May 2019. More data also shows that shipments index was up 7.7% compared to April, 5.9% higher conclusively on a seasonally adjusted basis. The reasons for the volume increase, was improvements in auto production, a steady offloading of containers at the ports and inventory restocking due to strong retail sales.
The expenditures component was up 49.9% year-over-year, which is an acceleration from the 45.1% increase recorded in April. The report noted that the May comp was the easiest of the COVID period and that future comps will get tougher.
There seems to be no letup in demand, a growing theme that many trucking executives spoke on at a recent investor conference. They also feel that capacity has likely been structurally altered and will remain an issue much longer than elevated demand ligers. Hefty consumer spending, a hole in inventories that needs to be refilled and a growing need for truck drivers, appear to be the stimulants at work for the industry at least through the back half of the year.
With the impact the pandemic has had in the industry over the last year and a half, it is optimistic seeing the growth in this data and improvements in the industry increasing. If you would like to learn more about the growth of freight, contact us today!