Freight Spend, Shipments Soft Again In August

Cass Information Systems data indicates a continued slowdown in the freight market, with August shipments declining 1.9% year over year. Despite this, demand for goods remains steady, and slowing capacity additions have reduced pressure on shipments. The expenditures index fell 9% year over year, marking the smallest decline since early 2023. Inferred freight rates hit a new cycle low, dropping 7% year over year. Diesel fuel prices declined 3% in August, impacting inferred rates. The Cass Truckload Linehaul Index declined 3.3% year over year and 0.6% sequentially, reflecting overcapacity and competitive bids. Spot rates have remained steady, but contract rates continue to face downward pressure. Overall, the industry is still recovering from a protracted recession, with no clear market inflection yet. The expenditures index is projected to decline 11-12% for the full year, while inferred rates are expected to drop 8% year over year.