Linehaul Index Nudges Up 1.6% Y/Y in November

The Cass Truckload Linehaul Index increased 1.6% year over year in November, after growing 1.9% and 3.2% in October and September respectively.

Analysts with Avondale Partners reiterated their tempered pricing forecast for 2016 between 1% and 3%. Although Avondale expects contract rate increases to continue to filter into the Index, several factors contributing to an increase in overall capacity were noted, including carrier pay increases, suspension of the 34-hour restart rule, and a decrease in carrier bankruptcies.

The Cass Intermodal Price Index (measuring all-in per-mile costs) fell another 2.4% year over year in November after drops of 3.2% in October and 2.3% in September.

With year-over-year costs declining since October 2014, analysts with Avondale Partners indicated that the fall in diesel prices continues to negatively impact intermodal rates. “[Falling diesel prices] has to challenge demand and pricing power for domestic intermodal, especially in shorter lengths of haul,” stated Avondale.

Category: Featured