In The News
End of labor flaps at western ports helps boost March freight
ST. LOUIS — The end of labor disputes at west coast ports is partly responsible for a March increase in freight volumes, says a release from Cass Information Systems.
The firm reported an increase of 0.3 percent in shipments over February, but reported that freight levels still trail March 2014 levels by 5.1 percent.
The Cass Freight Index was 1.086 for the month of March.
The Institute for Supply Management's (ISM) Purchasing Managers Index (PMI) fell in March for the fifth month since October 2014, resulting in an 11.1 percent decline during that period.
Although still lagging behind last year's freight levels, the increase in March volume is an indicator that the markets are moving in the right direction. Shipments generally increase during the spring shipping season as both production in the U.S. and imports gear up.
The Cass report noted that shipping expenditures increased during March in spite of the slower freight, but the increase was due more to tight capacity than to increased shipping activity.
Cass expects that capacity will continue to tighten as the economy resumes growth in the coming quarter.
A factor that will impact shipping on a more regional basis is the fallout from the labor issues at west coast ports. Two of the larger Intermodal shippers, HanJin and Hapag-Lloyd, moved their business out of the Port of Portland, citing the uncertainty of moving their products due to labor disputes at the facility. While the action will reduce Intermodal truckloads originating from the Portland area, shipments diverted to other facilities will undoubtedly increase freight availability in other port locations, putting additional pressure on local freight rates.
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