Freight Rates in U.S. Jump by Most in More Than 15 Years

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The cost of shipping freight in the U.S. continued to rise in August as equipment and labor capacity constraints persisted.

A measure of freight rates jumped 26.6% from a year earlier, the sharpest increase since February 2006, based on the latest figures from Cass Information Systems. The gain followed a 23.8% increase in July and marked the third straight month of acceleration.

Freight Rates in U.S. Jump by Most in More Than 15 Years

The volume of shipments by road and rail increased 12.2% from a year earlier, the smallest annual gain since March. At the same time, the group’s gauge of the amount spent on shipping freight surged 42.2% from August 2020.

While limited by intermodal capacity and a tight labor market, shipping volumes remain elevated. The Cass shipments index is at its second-highest point since 2018.

©2021 Bloomberg L.P.

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