Truck Contract Pricing Nearly Stable

| June 2, 2017

truck at port

Pricing for trucking appears to be stabilizing, according to Donald Broughton with Broughton Capital.

After being negative for 13 months in a row (year over year comparisons), April’s Cass Truckload Linehaul Index increased 1.3% YoY, to 124.6.

April’s pricing, while promising, was sequentially flat versus March and is still negative (down 1.0%) versus April of 2015.

Broughton’s pricing forecast remains -1% to 2% for 2017, as the current strength being reported in spot rates is leading him to believe contract pricing rates should move back into positive territory by the end of the year.

The latest data point for the Cass Intermodal Price Index shows total intermodal pricing rose 2.7% year over year in April after March’s 4.8% increase. This marked the seventh consecutive month of increases, but suggests that pricing momentum is slowing.

Broughton Capital expects intermodal rates to continue to show better strength in 2017 than was achieved in 2016, as the price of diesel fuel has recovered from oversold lows and has established a price more consistent with the marginal cost of production from domestic sources.

Category: Featured

Comments are closed.