Truckload Linehaul Up 2.9% in January
According to Cass Information Systems, truckload linehaul rates paid in January increased 2.9% year over year, resulting in the largest year-over-year increase in linehaul rates since last February.
Recent spot market data, combined with increasing demand and a high number of trucking companies exiting the market, all seem to indicate that rates – both contracted and in the spot market – will continue to rise.
In his January analyst report, Donald Broughton stated: “We believe that persistent cost pressures, relatively tepid demand, soft pricing, increasing regulatory pressure, and a less robust used truck market have taken their toll on smaller carriers over the last two years.” As a result, the number of trucking companies that went out of business in 2013 exceeded that of the prior two years combined.
Total tonnage and average weight per load are both rising. In the fourth quarter of 2013, tonnage was up almost 10% over 2012.
The Association of American Railroads reported that intermodal volumes rose 6.8%, 7.8%, and 8.0% in Oct, Nov, and Dec respectively. Truckload costs are increasing. Inevitably, according to the experts at Cass, intermodal costs will also rise.
In January, total intermodal cost per mile was 1.7% higher than in January 2013.
Category: General Update
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