Truckload Index Continues to Rise

Cass Truckload Linehaul Index Truckload linehaul rates for North America maintained their ongoing climb in August, with the Cass Truckload Linehaul Index up a solid 7% over August 2013.

The primary factors driving the climb – growing demand and declining capacity – have resulted in higher contract prices after a drawn-out bid season.

Spot market pricing also appears to remain strong. Capacity continues to exit the marketplace as increased regulatory pressures, namely EOBRs and Hours of Service changes, push marginally profitable carriers into failure.

As long-haul intermodal carriers move into shorter lengths of haul and the truckload market continues to tighten, it appears that pricing in the intermodal space will continue to be strong.

With diesel prices easing in recent weeks, the ‘all-in’ Cass Intermodal Price index could fall in the near term, despite indication that bases rates are improving.

Avondale expects intermodal rates to increase at a low single digit pace in 2014 as a tighter truckload environment offers an umbrella for higher pricing.

Category: Featured, General Update