Freight Shipping Index Grows 4 Percent

The Cass index of U.S. domestic shipping edged up 4 percent in May from the month before, providing new evidence the decline in the freight transportation economy is leveling off.

The closely watched Cass Freight Index for shipments still fell 21.4 percent in May compared to the same month a year ago, but that was better than the record 25 percent year-over-year decline the index showed in April and the best showing since February.

The shipments index hit 0.913, one of the lowest measures for freight shipment in the last 15 years but still one of the highest monthly levels so far in a dismal 2009 for U.S. freight transportation.

The shipping-focused report follows other measures reported this week that suggest some sectors of the economy may be moving toward recovery from the depths of the recession. The Institute of Supply Management’s monthly PMI index of manufacturing activity released this week reached its highest level in six months in April. And durable goods orders reported by the government showed their second month-to-month increase in three months in April.

On the spending side, the Cass index of freight expenditures showed its steepest year-over-year decline ever in May, falling 29.4 percent from May 2008, when energy costs were heading to record highs. The index grew 2.4 percent from April to May, however.