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Freight market on the rise

by KC SmartPort Intern | Jul 28, 2017

This April marked the fourth consecutive month of expansion in the North American freight market, according to the Cass Freight Index Report. January ended a 20-month trend of negative volume growth due to a lack of demand and falling oil prices. However, Donald Broughton, author of the report and economist says “the drought is no more.” In March, shipment volumes increased by 3.7 percent and expenditures by 3.1 percent, which both indicate a strong, positive trend. E-commerce parcel volumes continued to grow according to UPS and FedEx. Additionally, shipping and eCommerce are not the only sectors improving.

 The Cass Freight Index Report showed that every sector of transportation grew. Airfreight growth was noted in the Asia Pacific and European Atlantic lanes. While rail experienced the least amount of freight movement, it still positively contributed to the index. Broughton calls trucking, “the most reliable reads on the health of the domestic economy” and because of struggling brick-and-mortar stores, truck tonnage decreased 2.73 percent in February and 0.07 percent in March. The three-month moving average is about two points above the average and the American Trucking Association assures that the sector is still gaining momentum.

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