Freight shipments dropped sharply in August, down 9.3% year-over-year, the largest decrease since October 2023. Less-than-truckload shipments were the main contributor to the decline, while truckload and intermodal volumes rose. Tonnage declines were reported by LTL carriers amid subdued industrial activity.

Cass Information Systems predicts a 7% year-over-year decline in freight shipments for September. The company’s freight expenditures index, including fuel costs, fell 2.8% from July to August. Despite this, actual freight rates increased by 9.8% year-over-year, driven by a shift from LTL to TL shipments.

Cass’ TL linehaul index, excluding fuel and surcharges, saw a 1.8% sequential decrease but a 1.2% year-over-year increase in August. The demand for freight has been weak due to the ongoing trade war, but there are signs of potential recovery as private fleets contract and lost freight returns to the market.

The report remains cautious on freight demand due to the ongoing trade war effects, but sees potential for tighter capacity driving freight back to the market. Data for the indexes is sourced from freight bills processed by Cass, a provider of payment management solutions handling $36 billion in freight payables annually for customers.

Read more at Yahoo Finance: Freight shipments fall faster in August