Recession Watch: Freight Volume Drops, Worst Level since 2010

[marmar]

Recession Watch: Freight Volume Drops, Worst Level since 2010
by Wolf Richter • May 14, 2016


[font color="blue"]Inventory glut, lousy consumer demand, the global economy…[/font]

Freight shipments by truck and rail in the US fell 4.9% in April from the beaten-down levels of April 2015, according to the Cass Transportation Index, released on Friday. It was the worst April since 2010, which followed the worst March since 2010. In fact, shipment volume over the four months this year was the worst since 2010.

This is no longer statistical “noise” that can easily be brushed off.

The Cass Freight Index is based on “more than $26 billion” in annual freight transactions by “hundreds of large shippers,” regardless of mode of transportation, including by truck and rail. It does not cover bulk commodities, such as oil and coal and thus is not impacted by the collapsing oil and coal shipments. The index is focused on consumer packaged goods, food, automotive, chemical, OEM, heavy equipment, and retail.

In a similar vein, the Association of American Railroads reported last week that loads of containers and trailers fell 7.5% in April year-over-year. “Intermodal” is a direct competitor to trucking. Combined, they’re a measure of the goods-based economy. ..................(more)

http://wolfstreet.com/2016/05/14/recession-watch-freight-volume-drops-worst-level-since-2010/

[cantbeserious]

1. When The Middle Class Implodes - Consumer Demand Collapses - Shipping Demand Soon Plummets

eom

[My Good Babushka]

2. My nephew just lost his job

how bad is it going to get this time, I wonder.

[OnlinePoker]

3. So if we go into recession, will it be put on Obama as it was in Bush's case?

Obama did a good job getting the country moving again after the debacle of 2008, but the steam is coming out of it and whoever the next president is will have to contend with similar issues right from the start of their tenure.

[Skittles]

7. no, it will be blamed on Hillary

are we better off than we were in 2008? Yes. Is this the best that Obama could have done? No f***ing way, not by a LONG shot.

[fasttense]

4. No party in power when an economic crash hits, ever got reelected.

So, this crash will be on Obama (as was the one caused by W) and will pave the way for a GOP or outsider candidate. Anyone who comes across like the status quo will NOT have a chance in hell.

[elleng]

5. 'Anyone who comes across like the status quo will NOT have a chance in hell.'

Right.

[Warpy]

6. Depends on how that crash happens

This one looks like it's being manipulated at the top, honestly, because people are employed and are looking for things to buy. Yes, they're low end things, but they have to be shipped from Asia, also. I've noticed low stock and empty shelves all over the place lately, a result of either too tight inventory control or too few goods being shipped in.

It's more likely to be a slump than a crash this time.