On October 11, Cowen and AFS Logistics announced the launch of the Cowen/AFS Freight Index.
The Freight Index will serve to provide predictive pricing tools for multiple sectors within the freight industry, on a quarterly basis. The Freight Index will provide a performance snapshot of Less-than-Truckload shipping (LTL), full truckload shipping (TL), and parcel shipping (both express and ground, separately). This data will be featured in Cowen’s market-leading air freight and surface transportation equity research. Jason Seidl, Cowen’s Senior Analyst for Airfreight & Surface Transportation, is leading the initiative.
As one of the most experienced 3PLs and largest freight audit and payment companies in the industry, AFS holds unique access to freight data across transportation modes. Applying advanced analytics including machine learning algorithms, AFS and Cowen developed models that unveil the depth and richness of the data. In addition to the massive historical data, current macro- and micro-economic factors are carefully evaluated, selected, and built into predictive models, including the most recent General Rate Increase (GRI) announcement from a major parcel carrier. The resulting Cowen/AFS Freight Index offers a unique and comprehensive view of both past performance and the forecasted outlook for the upcoming quarter.
“Freight is a rapidly changing industry and the ability to track its performance has become a critical component of the investment process for our clients. There is strong demand for tools to accurately monitor and predict sector trends. The Cowen/AFS Freight Index is designed to fill that void,” said Jason Seidl. “Using applied machine learning, data science and the annual transportation spend at AFS since 2018 to give a strong picture of the overall market, the Freight Index currently forecasts, among other things, that we should see the TL rate market reach a new high in the fourth quarter of 2021, with LTL rates expected to grow at an even larger clip.”
“Our clients are leveraging data to improve efficiency in their logistics networks. Our intent with this groundbreaking Cowen/AFS Freight Index is to provide them with insights to make those data-driven networks even more effective,” said Tom Nightingale, Chief Executive Officer of AFS. “We’re bringing more than just raw, historical data to the market. We’re applying advanced, predictive analytics and unlocking the full information behind the data to deliver highly relevant insights that have real value for our clients.”