Cass Information Systems Sees Shipments Dip Narrow to 4.5%, Rates Up 9%
Cass Information Systems’ multimodal shipments index rose 3% sequentially to a year-over-year decline of 4.5%, the smallest annual drop since June. Expenditures climbed 4.9% month-over-month, implying freight rates were about 9% higher in March despite volume headwinds.
1. Freight Volume Trends
In March, Cass’s multimodal shipments index rose 3% sequentially (1% seasonally adjusted) following February’s 10.4% gain, narrowing its year-over-year decline to 4.5%, the smallest drop since June. On a two-year basis, volumes tracked were off less than 10%, indicating a gradual recovery in freight demand.
2. Expenditures and Rate Trends
The expenditures index, which measures total freight spend including fuel, increased 4.9% month-over-month (2.4% seasonally adjusted) and 4.2% year-over-year. The divergence between volume declines and spending growth implies freight rates were roughly 9% higher in March, reflecting tighter market conditions.
3. Capacity Conditions and Forecast
Tight dry van capacity and new non-domicile CDL rules have constrained driver availability, supporting higher rates. The shipments index is expected to be down about 5% year-over-year in April under normal seasonal patterns and is forecast to turn positive in the back half of the year with 1.5% growth.