Truck Tonnage Index Sets New High in December as Economy Rolls

In yet another sign of strengthening economy, the  Cass Truckload Linehaul Index set a new high in December at 117.7 (compared to a baseline of 100.0 in January 2005).

Truckload shipping costs simply continue to climb, following an almost identical pattern in each of the last four years. In December 2013, shippers paid 1.5% more in linehaul charges than the year before.

Throughout 2013, demand steadily improved while capacity remained stagnant, with neither the available driver pool nor truck count growing. The analysts at Avondale Partners expect demand (tonnage) to continue to show strong growth in 2014.

The group stated: “Truck tonnage is currently growing at the strongest rate in three and a half years. Importantly, we would also note that the most recent data suggest loads are growing at ~4%, a reversal from the trend in Q4’12 and Q1’13. . . We expect stronger industrial production, a modestly improved backdrop for the consumer, and the continued recovery in housing to support further growth in truck tonnage in 2014.”

At the same time, intermodal costs (linehaul, accessorials and fuel) in December were 1.0% lower than a year earlier and estimates are intermodal shipping costs will remain relatively flat in the near term.

Category: General Update