ST. LOUIS, MO – Cass Information Systems says a year-end slump in retail sales (down 0.9 percent in December according to the National Retail Federation) contributed to a decline in December freight shipments.

According to the Cass Freight Indexes, shipment volume was down 6.3 percent in December. There was a matching 6.7 percent decline in freight spending.

However, the December figures mark the highest end-of-year values for both indexes since the beginning of the recession in 2007. Traditionally, the peak holiday shipping season falls in the July-to-September time frame as retailers build up their inventories.

Cass says falling diesel fuel prices continue to lower freight costs. Additionally, the decline in volume relieved much of the pressure on capacity, which pushed down both the demand for trucks on the spot market and spot prices.

December 2014 expenditures are 3.6 percent higher than the corresponding month in 2013.

Contract rates have been rising as carriers gain more pricing control, allowing them to pass on their increased costs, especially those for drivers.