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    January 16, 2015

    Logistics Issues to Persist in 2015

    Written by Sandy Williams

    The Cass Freight Index report showed a 6.3 percent month-over-month drop in shipment volume in December, in line with seasonal expectations. The peak holiday shipping season is generally July to September, but Cass Information Systems says the peak in 2014 was earlier due to concerns related to the expiration of the ILWU labor contract at West Coast ports on July 1. Retailers imported stock sooner and some diverted shipments to the East Coast and Gulf Coast ports. Shipments were still 4.0 percent higher than December 2013.

    Freight expenditures declined 6.7 percent in December, due to the drop in shipment volume and weaker spot prices. Freight costs continue to decrease due to falling diesel fuel prices. DAT Trendline reported fuel prices down 6.5 percent from November to December. Spot market capacity was up 1.7 percent in December.

    Sandy Williams

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