Cass Truckload Linehaul Index Up 7.3%
In October, the Cass Truckload Linehaul Index rose 7.3% year over year as rates continue on their upward trajectory.
The group anticipates that the combination of increasing demand and capacity shortages will continue to push the index higher as effects from this year’s new contract pricing are filtering into the market.
Total intermodal pricing, as reflected in the Cass Intermodal Price Index, rose 3.9% year over year in October. This was a 4.8% increase over September levels and it appears that intermodal rates could increase at a low single digit pace in 2014 due to a continuing tightening of the truckload environment.
According to Avondale Partners, “We would note that even with diesel prices falling in recent weeks, our ‘all-in’ index continues to accelerate in the near term, showing that base rates are improving at a rate that surpasses the lag due to fuel pricing.”
Avondale expect the intermodal space to remain competitive, but that costs will increase as more long-haul carriers move into shorter lengths of haul and the truckload market continues to tighten.
Category: Featured, General Update, Management
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