Cass Truckload Linehaul Index Accelerates

After signaling an industrial recession in the U.S. and being negative for 13 months in a row (from March 2016 through March 2017), the Cass TL Linehaul Index has not only been positive now for ten months in a row, but the strength is continuing. “In just the last seven months, our pricing forecast has increased from -1% to 2%, to 6% to 8%, and now giving us reason to believe the risk to our estimate continues to be to the upside,” stated Donald Broughton, analyst and commentator for the Cass Indexes. “The current strength being reported in spot rates tells us contract pricing rates should keep rates in positive territory well into 2018.”

Cass Intermodal Price Index

The latest data point shows total intermodal pricing rose 5.0% YoY to 141.4 in January (an all-time high) with a YoY three-month moving average increase of 4.3%. January marked the sixteenth consecutive month of increases, and pricing momentum continues to strengthen. Higher diesel prices are creating demand and pricing power for domestic intermodal. “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 (without the refining interruption pressure produced by hurricanes or other catastrophic events),” stated Donald Broughton, analyst and commentator for the Cass indexes.