Linehaul Index Remains Strong

November’s Cass Truckload Linehaul Index continued the run of strong price increases that began in 2017 by posting a 7.9% YoY increase to 141.6.

This represents a slightly lower increase on a nominal basis than the new all-time high achieved last month (Oct ’18 – 143.4), but still significant given the tougher comparison.

“We expect continued nominal strength in the coming months, but slightly lower percentage increases as comparisons grow increasingly tough,” stated Donald Broughton, analyst and commentator for the Cass indexes.

This represents a slightly lower increase on a nominal basis than the new all-time high achieved last month (Oct ’18 – 143.4), but still significant given the tougher comparison. “We expect continued nominal strength in the coming months, but slightly lower percentage increases as comparisons grow increasingly tough,” stated Donald Broughton, analyst and commentator for the Cass indexes.

Total intermodal pricing (all-in intermodal costs) continued its strong upward trend, rising 10.6% YoY in November. On a nominal basis, the index rose to 144.4, pulling back slightly from the all-time record high of 147.3 established last month. November marked the 26th consecutive month of increases, and brought the YoY three-month moving average to 10.5%.

“Tight truckload capacity and higher diesel prices were creating incremental demand and pricing power for domestic intermodal,” stated Donald Broughton, analyst and commentator for the Cass indexes. “However, with the recent decline in WTI crude from over $70 a barrel to under $55 a barrel, we are now expecting the price of fuel’s positive influence on the demand and pricing power for intermodal services to decrease in coming months.”

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