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Truckload Linehaul Index Up 6.3% YoY in November

| December 15, 2017


November’s Cass Truckload Linehaul Index measured linehaul rates at 6.3% over the same month last year, with the current index value at 131.2 (compared to a baseline of 100 in 2005).

Pricing for trucking is growing ever stronger and continuing to gain momentum. After being negative for 13 months in a row, the Cass TL Linehaul Index has not only been trending positive on a year-over-year basis for eight months now, but the amount of change continues to increase as well.

“In just the last five months, our pricing forecast has increased from -1% to 2%, to 0% to 2%, to 2% to 4%, and now giving us reason to believe the risk to our estimate may be to the upside,” stated Donald Broughton, analyst and commentator for the Cass indexes. “The current strength being reported in spot rates is leading us to believe contract pricing rates should keep rates in positive territory well into 2018.”

The latest data point shows total intermodal costs rose 3.9% YoY to 130.6 in November. November marked the fourteenth consecutive month of increases, and pricing momentum appears to be increasing. The absolute nominal value of the index established its most recent peak in March at 135.4 (as diesel flirted with $2.60 a gallon) and then sequentially trended lower since (as diesel fell back toward $2.50 a gallon in July).

“Longer term, we continue to foresee oil trading in the $45 to $55 range and diesel in the $2.25 to $2.75 range throughout 2018 (sans the refining interruption pressure produced by hurricanes or other catastrophic events),” stated Donald Broughton, analyst and commentator for the Cass indexes.

Category: Featured, General Update, News

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