What is Freight Index?
By definition, the freight index is a data average of weight for trucking,
waterborne, freight rail, air freight, and pipeline. It is a measurement of
aggregate deliveries of freight. Formed as data by the Bureau of Transportation
Statistics Transportation Services Index (BTS TSI), the Cass Freight Index, and the
Dow Transportation Index, the freight index is used to track the supply chain
indicators.
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Thanks to online technology’s impact on the shipping industry, numerous companies
today send data that allows the nation to collect freight bills from the shipping
clients, as well as provide estimates of freight cost for shipping and logistics.
These three economic indicators inform predictions and analyses about the health of
the economy within the state. They reflect the transportation providers’ responses
to the demands of the economy in regards to moving passengers or freight.
In order to produce higher quality and bigger quantities of goods to deliver to
customers, various industries demand freight transportation services for raw
material, finished products, and intermediate goods. This goes across the entire
supply chain. As a result, transportation is considered a great indicator of
economic decline or growth.