728 banner ad

728 banner ad
220 banner ad

220 banner ad

Linehaul Index Continues to Accelerate, Up 11% YoY

| September 13, 2018

loading trucks

August’s Cass Truckload Linehaul Index continued the increasing rate of acceleration that began in 2017 by posting an 11.1% YoY increase to 138.4.  

This is the strongest percentage increase in the history of this index, and an all-time high on a nominal basis.

“Three months ago, we increased our realized contract pricing forecast for 2018 from a range of 6% to 8% to a range of 6% to 12%, and current data is clearly signaling that the risk to our estimate may still be to the upside,” stated Donald Broughton, analyst and commentator for the Cass indexes.  “We believe that this is the strongest normalized percentage level of truckload pricing achieved since deregulation (normalized meaning except for extreme periods of recovery from recession).”

Total intermodal pricing (all-in intermodal costs) continued its upward trend, rising 11.4% YoY in August.  On a nominal basis, the index rose to 141.6, the third highest value since index inception.  August marked the 23rd consecutive month of increases, and brought the three-month moving average up to 11.4% (in line with the monthly rate of increase).
“Tight truckload capacity and higher diesel prices are creating incremental demand and pricing power for domestic intermodal,” stated Donald Broughton, analyst and commentator for the Cass indexes. “Longer term, we continue to foresee oil trading in the $45 to $65 range and diesel in the $2.50 to $3.25 range throughout 2018, and even higher in certain regions within the U.S.”

Category: General Update, News

Comments are closed.