Dive Brief:

• The Cass Freight Index's May 2017 report found the industry's recovery continues to accelerate, as the latest figures were among the highest since the outset of a 20-month recession.
• Shipments rose 7.1% from May 2016, while expenditures grew 7.4% in the same period. While expenditures only grew 0.9% more than in April, shipments soared by 4.3% on a month-to-month basis.
• Cass notes this growth may largely be a result of higher fuel prices, which raises rates. Even independent of fuel, however, the Cass Truckload Linehaul Index finds rates are consistently rising. Rates rose 1.1% in May, compared to last year, marking the second month of price increases. Prior to April, the index had declined for 13 consecutive months.

Dive Insight:

A rising tide lifts all boats: The freight sector's general recovery is beginning to translate into higher figures across-the-board, including in indices tracking per-mile rates.

Each month, Cass re-emphasizes one economic principle: volume leads pricing. As a result, whether in trucking, rail, sea or air, freight's recovery would be unsustainable absent of shippers' confidence in the market. General economic indicators suggest that business and consumer confidence has been rising steadily, albeit with a few hiccups.

Last month, Supply Chain Dive wrote that slow growth should temper shippers' expectations for the freight sector, as the American Trucking Associations reported a contraction in volumes during April, and global logistics disruptions could still reverse growth trends.

May's figures suggest otherwise. The freight industry was eventually bound to benefit from the uptick in economic confidence. The recent data shows both shipments and expenditures are not just rising, but rising to match pre-freight-recession levels. The second consecutive month of price increases, as measured by Cass' Truckload Linehaul Index, further supports the perception that the sector's growth is here to stay.

In fact, Cass' lead writer Donald Broughton forecasts "contract pricing rates should move back into positive territory by the end of the year," given the current strength in spot rates.