Truckload Linehaul Rates Spike in March
Truckload linehaul rates spiked in March, with the Cass Truckload Linehaul Index surpassing the 120 mark, showing a 6.0% year-over-year increase – the largest in 35 months – and setting a new high. From February, linehaul rates rose 3.7%, displaying an above-normal sequential increase for the fourth straight month.
Demand for freight transportation continues to improve while capacity shrinks as carriers continue to exit the marketplace.
The cost of intermodal shipping also continues to rise, with March costs reflecting a 1.8% upsurge over the same month last year and a 2.5% increase from February.
Like the Cass truckload index, the organization’s intermodal index has also reached a new peak.
The prediction by the transportation analysts at Avondale Partners is that “domestic container shipments will grow at a high single digit rate in 2014, with particular strength in ‘local East’ shipments.”
They added that overall intermodal volumes rose only 2.5% year over year in Q1 2014 (according to the American Association of Railroads), as adverse winter weather hampered volumes across the country.
Category: Featured, General Update
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