Truckload Linehaul Index Accelerates

February’s Cass Truckload Linehaul Index continued accelerating, posting another 6.5% YoY increase to 131.3 in February.

After being negative for 13 months in a row (from March 2016 through March 2017), the Cass TL Linehaul Index has not only been positive now for eleven straight months, but pricing for trucking continues to increase. “In just the last seven months, our pricing forecast [for 2018] has improved from -1% to 2%, to 6% to 8%, and we now have 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.”

Additionally, the latest data point shows total intermodal pricing (all-in intermodal costs) rose 5.4% YoY to 137.9 in February, marking the seventeenth consecutive month of increases, and pricing momentum is strengthening.

Tight truckload capacity and higher diesel prices are creating incremental demand and pricing power for domestic intermodal.

“Longer term, we continue to foresee oil trading in the $45 to $65 range and diesel in the $2.50 to $3.25 range throughout 2018 (without the refining interruption pressure produced by hurricanes or other catastrophic events),” stated Broughton.

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