The Cass Freight Index, which measures shipment activity in trucking and other transport modes, declined 2% in October from a year ago. Expenditures increased 0.8% from 2012.
Expenditures — freight payments to carriers by shippers that are processed by Cass — declined 2.6% from September, the largest drop this year, St. Louis-based Cass Information Systems said. Month-to-month, shipments fell 3.5% from September.
“The sharp reduction in the shipment volume in October can be linked to the government shutdown. Although Customs and Homeland Security workers were exempt from the furlough, many freight shipments were delayed because other government agencies were not open to perform necessary inspections or processing,” Cass said in its report.
“Railroad carloadings declined again in October, dropping 0.7%, while intermodal loadings reversed September’s drop and rose 2.5%,” according to the report.
“Underwhelming retail sales has resulted in lower expectations for the holiday season,” the report stated. “The National Retail Foundation forecasts that the average holiday shopper will spend 2.5% less than in 2012, representing the first forecasted decline since the 2008 holiday season.”
