Demand for freight in the U.S. continues to show signs demand is gradually picking up and
buyers need to make sure their carriers are ready for it. U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported today that its Freight Transportation Services Index (TSI) rose 1.6% in July from its June level, the first monthly increase since February and the largest increase since January 2008. The Freight TSI measures the output of for-hire freight transportation based on data from all freight modes.

The TSI’s uptick was considered so significant, Transportation Secretary Ray LaHood issued a statement saying, in part:

“The rise in the freight index for the first time since February is a sign that the economic recovery is beginning…However, despite this tangible sign of progress, we all know that we still have a long way to go. We will redouble our efforts to make sure transportation infrastructure is one of the drivers for the future.”

In another sign of a freight demand rebound, railroad executives speaking at an investor conference this week said despite their 2009 volume slump, a gradually rebounding economy could bring price increases to rail shippers next year.

Reuters reports that executives speaking at the Dahlman Rose & Co Global Transportation Conference in New York are forecasting rail freight price hikes of between 3% and 6% next year, as shipping volumes rebound from this year’s drought. Thomas Hund, CFO for Burlington Northern Santa Fe Corp. forecasted rate hikes of 3-4% in 2010 and 2011. CSX Corp. is even more bullish, predicting price increases of more than 6%, according to Lester Passa, CSX’s vice president of strategic planning. Truckmaker Navistar today predicted North American commercial truck sales will increase by a moderate 11% next year and detailed a joint venture is established with Caterpillar aimed at selling more trucks outside the U.S.

Earlier this week, Purchasing.com reported that a recent increase in monthly containerized West Coast imports in July may mean that U.S. freight demand has hit bottom, according to a recent report from KeyBanc Capital Markets. A 7% increase in container imports in July over June levels signals an end to the long-running declines in imports, say KeyBanc analysts, who forecast imports to increase 4% in 2010 and 7% in 2011, implying a steady improvement in container activity, as well as potential truck and rail volumes.