Cass Information Systems Inc

Truckload linehaul rates rose 11.3% year over year in August while freight shipments turned positive for the first time in three and a half years, according to data from Cass Information Systems. The Cass TL linehaul index, which tracks rates excluding fuel and accessorial surcharges, marked its 20th consecutive year-over-year increase and its largest gain since June 2022, and was up 70 basis points from July. Freight shipments recorded by Cass increased 2.1% year over year, the first such increase after 42 months of declines, and were 5.6% higher sequentially in August, or up 5% seasonally adjusted. Cass' expenditures index, which measures total freight spend including fuel, surged 18.7% year over year and rose 5.8% from July, or 6% seasonally adjusted, driven by the positive inflection in shipments and diesel prices that were up 46% year over year and 10% sequentially. The report said the sequential increase in linehaul rates was in line with expectations and noted that even as spot rates slow with modest sequential declines, the much larger contract market is adjusting higher, adding that the freight bottom is probably in and growth should continue, though modestly. Cass, a provider of payment management solutions, processes $37 billion in freight payables annually on behalf of customers.

Cass Information Systems declared a quarterly dividend of $0.32 per share, in line with the previous payout. The dividend carries a forward yield of 2.39% and is payable on September 14 to shareholders of record as of September 4, with the ex-dividend date also set for September 4.

Cass Information Systems reported that its truckload linehaul index, which excludes fuel and accessorial surcharges, rose 5.5% year over year in June, marking the 18th consecutive month of annual increases. The broader expenditures index, measuring total freight spend, surged 11.2% year over year, driven by higher rates and a 40% jump in retail diesel fuel prices. However, the shipments component of the Cass Freight Index fell 4.1% year over year, accelerating from a 1.2% decline in May, and slid 3.1% sequentially. The report noted that tighter supply remains the main reason for accelerating rates, while a demand recovery may be delayed by inflation and a low U.S. savings rate.