Cass Freight Index sees 'considerable' U.S. freight recession risk

Cass Information Systems

12/05/2022 17:08

LOS ANGELES, May 12 (Reuters) - A closely watched
transportation report on Thursday said "the prospect of freight
recession is now considerable" as the spending shift from goods
to services accelerates, inflation erodes disposable income and
interest rates climb.  
    Freight transportation is viewed as a barometer for the U.S.
economy because when goods purchases fall, trucks and trains
carry less cargo and business activity slows.  urn:newsml:reuters.com:*:nL2N2W61RT
    "After a nearly two-year cycle of surging freight volumes,
the freight cycle has downshifted with a thud," authors of the 
Cass Freight Index wrote in their April report.
    U.S. freight volumes fell in April from March and the
year-ago period, according to the report produced by data
company Cass Information Systems Inc that is closely followed by
analysts and investors. 
    The shipments component of the index fell 0.5% year over
year in April, following a 0.6% year-on-year increase in March.
    The April shipments component dropped 2.6% from March, and
was 0.9% below the normal seasonal pattern.    
    "With more difficult comparisons in the next few months as
global supply chain disruptions are set to intensify, more
softness is on the horizon," the report said.    

 

 (Reporting by Lisa Baertlein in Los Angeles; Editing by Mark
Porter)
 ((lisa.baertlein@thomsonreuters.com; +1 310-491-7241; Reuters
Messaging: lisa.baertlein.thomsonreuters.com@reuters.net))