Truckload Linehaul Index Continues to Fall

The Cass Truckload Linehaul Index declined another 1.8% year over year in June after falling 2.3% and 1.2% in April and May respectively.

This represents four consecutive months of year over year declines. Analysts at Avondale Partners have further adjusted their pricing forecast range downward (-3% to 1%) for the remainder of 2016, reiterating that several factors continue to contribute to excess capacity—including driver pay increases, overall fleet growth, reduction in carrier bankruptcies and an easing of the 34-hour restart rule.

The Cass Intermodal Index fell another 1.5% year over year in June, representing 18 consecutive months of year over year declines. Historically, there is a “high degree of correlation between truckload and intermodal pricing,” stated analysts with Avondale Partners. As contract rates for trucking continue to lose strength and move further into negative territory, “[this] would imply even more potential weakness for intermodal pricing.”

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