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Volumes in North America's freight sector are flat in January: Cass Index
THE Cass Freight Index Report shows North American shipment volumes decreased marginally by 0.2 per cent and transport expenditures shrank by 1.4 per cent in January against the same month last year.
On a month by month basis, January's shipment volumes declined by 1.3 per cent and expenditures dropped 1.9 per cent compared to December 2015. Overall shipment volumes were down 3.7 per cent in December year on year.
"The economy grew much more slowly in the second half of 2015, so January freight shipments were down 11.6 per cent and dollars spent were down 11.5 per cent from the June 2015 high," Cass said.
"January was the fourth month in a row that the number of freight shipments declined," it said, attributing this to waning rail traffic because of the slump in commodities, reported American Shipper.
"The continued steep decline in energy prices hurt the railroads on several fronts in January," said Cass. "First, it caused a dramatic decline in coal shipments, one of their primary commodities, as power generating plants continue to shift to less expensive natural gas.
"Second, a drop in petroleum and petroleum product shipments brought oil mining came to a virtual standstill in the US. And third, there has been a loss of shipments of materials used in petroleum extraction.
"Truck tonnage also eroded in January, but not to the same extent as railroads," it added. "Carriers are reporting that capacity and demand are very well matched right now."
On a month by month basis, January's shipment volumes declined by 1.3 per cent and expenditures dropped 1.9 per cent compared to December 2015. Overall shipment volumes were down 3.7 per cent in December year on year.
"The economy grew much more slowly in the second half of 2015, so January freight shipments were down 11.6 per cent and dollars spent were down 11.5 per cent from the June 2015 high," Cass said.
"January was the fourth month in a row that the number of freight shipments declined," it said, attributing this to waning rail traffic because of the slump in commodities, reported American Shipper.
"The continued steep decline in energy prices hurt the railroads on several fronts in January," said Cass. "First, it caused a dramatic decline in coal shipments, one of their primary commodities, as power generating plants continue to shift to less expensive natural gas.
"Second, a drop in petroleum and petroleum product shipments brought oil mining came to a virtual standstill in the US. And third, there has been a loss of shipments of materials used in petroleum extraction.
"Truck tonnage also eroded in January, but not to the same extent as railroads," it added. "Carriers are reporting that capacity and demand are very well matched right now."
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