Average Truckload and Intermodal Freight Costs Fall from April

According to Cass Information Services, truckload linehaul costs in May averaged 5.8% higher than the same time last year after seeing similar increases the previous two months (5.7% in April and 6.0% in March).

With demand improving and capacity exiting the marketplace at a faster pace, the 2014 bid season (~70% of all contracts are negotiated in the first 4 months) has resulted in higher truckload costs for the shipper.

Industry analyst firm Avondale Partners expects truckload pricing to increase 4-6% in 2014.

From April to May, pricing fell 2.2% (slightly less than the historical average), after displaying above-normal sequential increases in five of the last six months.

At the same time, total intermodal costs rose 2.6% year over year in May, after seeing increases of 1.4% in April and 1.8% in March. Sequentially, intermodal costs fell 2.7%, in line with seasonal trends.

Domestic U.S. intermodal volumes should, according to Cass, continue to grow this year.

Category: Featured, General Update