Linehaul Index Down in December
The Cass Truckload Linehaul Index, which tracks monthly changes in linehaul rates, declined 0.9% YoY in December, marking ten consecutive months of YoY declines.
Despite this negative trend, analysts at Avondale Partners commented, “the current strength being reported in spot rates is leading us to believe that [our current -3% to 1% truckload pricing forecast] may need to be improved/moved to a slightly more positive outlook if the strength in spot rates continues long enough to move contract rates back into positive territory.”
The Cass Intermodal Price Index, measuring changes in total intermodal per-mile costs, increased 1.5% YoY in December after rising 0.3% and 0.4% in November and October respectively.
Although diesel fuel prices have recovered from their early 2016 lows, “we do not expect a significant amount of sequential strength from intermodal,” stated analysts at Avondale Partners. “But,” they continued, “the current level of demand and pricing will produce a positive YoY comparison for the next 9 to 10 months.”
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