by Mike ‘Mish’ Shedlock
The Cass Freight Index report discusses the Lost April. But what’s next?
Is May the Shipping Bottom?
The Cass Freight Report suggests April is the bottom while blaming what has happened as a self-inflicted wound.
The Cass Freight Index showed the expected big dip in activity last month, after all the March consumer panic buying subsided, leaving us with just the negative impact of shut-in orders and rising unemployment levels. For April, the overall index for both shipments and expenditures fell sharply y/y to recessionary levels. This is concerning but would be more concerning if it weren’t a self-inflicted wound. Businesses and mobility were severely limited by unprecedented governmental restrictions in April, and those are loosening here in May and should further loosen on their way back to “normal” in June.
Cass April Shipping Level