Freight shippers continue to pay a rising price.
As part of its monthy analysis of transportation volumes and costs, Cass Information System, with partner ACT Research, publishes a wide variety of metrics on freight trends. That includes a measure that Cass calls "Inferred Freight Rates." It is calculated by comparing shipment volumes for a period (across modes but weighted towards truckload shipping) with the overall freight expenditures for the same period.
So if shipments were up 5%, and expenditures were up 8%, there would an inferred rate increase of 3%.
A chart of inferred rate changes since 2012 through January 2022 is shown below:
e
Source: Cass Information Systems
As can be seen, inferred have risen sharply since the end of 2020. After rising 23% in 2021, Cass Inferred Freight Rates where up another 30%+ in January year over year.
The inferred rates are also now at an all-time record, in bad news for shippers but good for carriers.
Any reaction to our Supply Chain Graphic of the Week? Let us know your thoughts at the Feedback button below.
Your Comments/Feedback
|