Monday, February 7, 2011 by
According to the Cass Freight Index, although freight shipments declined in January, numbers were higher than levels for the same period in 2010.
The Cass Freight Index represents monthly levels of shipment activity, in terms of volume of shipments and expenditures for freight shipments. Cass Information Systems processes more than $14 billion in annual freight payables on behalf of its clients. The Cass Freight Index is based upon the shipments of hundreds of Cass clients representing a broad spectrum of industries.
Compared to 2010, January shipment volume was up 12.3 percent, which is a strong sign that the recovery is continuing forward. Inventory levels have been climbing in recent months, so adjustments are being made. The result is a decline in shipment volumes for the last two months: 3.7 percent in January and 3.6 percent in December 2010. In addition, weather had a very adverse impact on freight movement, particularly in the Northeast, which was hit hard and often during January.
Consumers are not leading the recovery as they have after previous recessions, which means this is new ground for charting the future, note the index's authors. The trend will be for leaner inventories and immediate response to stockpiling. Industrial production rose over the last several months and manufacturing orders have also picked up substantially, both of which will lead to increasing freight volume.
A strengthening at the end of January signals an expected rise in shipment volume in coming months.
Tuesday, July 20, 2010 by
The Motor Carrier Protection Act of 2010 (Senate Bill S. 3483) was introduced and referred to the Senate Committee on Commerce, Science and Transportation on June 14, 2010. If passed, Part 139 of Title 49 of the United States Code would be amended to add more regulation and oversight of transportation brokers and freight forwarders, with the purported goal of protecting smaller carriers from fraudulent or abusive brokers.
The bill imposes a number of new requirements on carriers, brokers and forwarders. Among other things, the bill:
- Increases the broker bond from $10,000 to $100,000 and applies the bonding requirement to freight forwarders;
- Clarifies that trucking companies must have broker authority or freight forwarder authority in addition to their motor carrier authority to arrange freight through another carrier for compensation; and
- Creates an annual operating authority renewal requirement for brokers and freight forwarders; and requires the FMCSA to revoke operating authority that is not renewed annually.
The full text of the bill can be viewed at: http://www.govtrack.us/congress/billtext.xpd?bill=s111-3483.