Editor's Note: This story is part of a weekly analysis of the logistics industry's latest statistics. See an overview in our data hub.
Dive Brief:
- The Cass Freight Index's June 2017 report revealed that the freight industry is starting to pick up after struggling through an ongoing recession since March 2015.
- Even though shipments decreased by 0.4% MoM, expenditures increased by 1.9% MoM and 5.4% YoY, indicating that consumers are more willing to invest in the trucking industry, signaling future growth.
- The Cass report notes that consumers are spending more in e-commerce markets as opposed to brick-and-mortar retail, which is a driving factor in trucking growth. Although June's numbers weren't as strong as May's, Cass is confident that the trucking industry will only continue to accelerate.
Dive Insight:
Although the freight industry did not grow as quickly in June as it did in May, the numbers still indicate strong continued growth, as consumers rely more and more on truckers to deliver shipped goods bought online.
According to the Cass Freight Index's data, freight expenditures "turned positive" in January 2017 for the first time in 22 months, as June marks six straight months of increased spending in the trucking industry, even though the rate at which consumers are spending continues to vary month-to-month.
Cass attributes the expenditures increase in part to the rise of fuel prices, but reported that consumer confidence is high and driving the growth.
The American Trucking Association (ATA) recently announced its Freight Transportation Forecast 2017, expecting the industry to grow 2.8% this year and 3.4% through 2023.
"While overall truck volumes will continue to rise, and trucking will remain the dominant freight mode — its share of freight tonnage will dip to 67.2% by 2028, with pipelines picking up most of the additional market share, and, to a lesser extent, rail intermodal," ATA Chief Economist Bob Costello said.
The numbers jibe with the Cass Index, so shippers and truckers can expect prices to rise in the short-term as demand increases.