Freight volumes quoted by US retail stores flat QoQ in Sept: Loadsmart

US real retail sales have been negative on a YoY basis for the whole of the year, but surprisingly, retail-quoted volumes have not experienced a comparable decline so far, the report said.

Loadsmart is a logistics technology platform that enables shippers, carriers, and brokers to efficiently manage an automated supply chain.

Its price index increased by 4.1 per cent month on month (MoM) in September. Rates were sluggish at the start due to the Labor Day holiday, but jumped after the second week of the month and continued throughout September at a new level. For the first time in the year, a YoY increase in the index was noted.

Its volume Index rose by 1.1 per cent MoM in September. The index has already rebounded by about 6 per cent from its April low and Loadsmart expects this trend to continue as the country enters the peak season.

There has been much speculation as to whether the spot rate recovery was simply a pass-through of a diesel price increase to rates. Loadsmart data, however, contradict this hypothesis.

Its rate recovery began in June, about two months before there was a significant surge in fuel prices (diesel prices started an uptrend in July). In addition, both linehaul-only and all-in rates have recovered so far. The recovery of the former has indeed slowed due to the increase in fuel prices, but the upward trend continues.

Loadsmart believes that linehaul-only rates should continue to rise over the long term, even with further fuel price increases, as truck capacity continues to shrink.

ALCHEMPro News Desk (DS)