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Truckload Linehaul, Intermodal Rates Post Solid Gains

Truckload linehaul rates for North America maintained their ongoing climb in August, with the Cass Truckload Linehaul Index gaining a solid 7% over August 2013.

by Staff
September 25, 2014
Truckload Linehaul, Intermodal Rates Post Solid Gains

 

2 min to read


Truckload linehaul rates for North America maintained their ongoing climb in August, with the Cass Truckload Linehaul Index gaining a solid 7% over August 2013.

The primary factors driving the increase, growing demand and declining capacity, have resulted in “higher contract prices after a drawn-out bid season,” according to Cass.

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It said spot market pricing also appears to remain strong while capacity continues to exit the marketplace as increased regulatory pressures, namely EOBRs and hours of service changes, push marginally profitable carriers into failure.

The investment firm Avondale Partners, which provides analysis for the report, said its outlook remains unchanged but positive. “We continue to expect contract truckload pricing to rise 4% to 6% in 2014, with the higher end looking increasingly likely.”

Cass Intermodal Price Index

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Continued strength in intermodal volumes pushed the Cass Intermodal Price Index up 3.5% over last August’s levels.

As long-haul intermodal carriers move into shorter lengths of haul and the truckload market continues to tighten, it appears that pricing in the intermodal space will continue to be strong, according to the report.

With diesel prices easing in recent weeks, the index could fall in the near term, despite indication that bases rates are improving, said Avondale Partners. It expects intermodal rates to increase at a low single digit pace in 2014 as a tighter truckload environment offers an umbrella for higher pricing.

The Cass Intermodal Price Index is indicator of market fluctuations in per-mile U.S. domestic intermodal costs, including all costs associated with the move such as linehaul, fuel and accessorials.

The Cass Truckload Linehaul Index is an indicator of market fluctuations in per-mile truckload pricing that isolates the linehaul component of full truckload costs from other components, such as fuel and accessorials.

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Data within both are derived from actual freight invoices paid on behalf of Cass’ clients, which totaled over $23 billion in 2013.

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