Three freight indicators that point to a cycle bottom

<p>As we approach the end of Q3, there are signs of stability in shipping. CIBC highlights three indicators released in the past week that point to a potential floor in the beaten-up freight sector.</p><p>1) The American Trucking Associations' (ATA) Report:
</p><ul><li>
The Truck Tonnage Index, which measures truck shipments, went up by 0.2% in August after a 1.1% rise in July.</li><li> ATA
commented that there is growing evidence tonnage hit bottom in April and
continues its slow climb upwards.</li></ul><p>2) Cass Shipments Data:</p><ul><li>The Cass Shipments Index increased by 1.9% in August.</li><li>Cass still highlights a
soft environment but the survey noted that there has been significant progress made
in rebalancing the freight market. </li></ul><p>Spot U.S. Van Shipping Rates:

</p><ul><li>The rates, from DAT, have been stable since May around the mid-US$1.50 per mile mark.
</li><li>Cass's own metric, the Truckload Linehaul Index, has seen a slower decline over the past three months, averaging a drop of 0.3% per month, which is better than the average 1.4% monthly drop from the previous year.</li><li>Cass notes this likely reflects a combination of stabilizing
spot rates and smaller declines in contract rates</li></ul><p>It might be a slow recovery in this sector but the goods recession might have found a bottom.</p>

This article was written by Adam Button at www.forexlive.com.