Truckload Linehaul Index up Big, 9.5% YoY

June’s Cass Truckload Linehaul Index has continued to increase, posting an 9.5% YoY increase to 134.7, the largest YoY percentage increase in this index to date (the base year is 2005).

After being negative for 13 months in a row (from March 2016 through March 2017), the Cass Truckload Linehaul Index has not only been positive now for 15 consecutive months, but the strength is continuing to accelerate.

“We are increasing our realized contract pricing forecast for 2018 from a range of 6% to 8% to a range of 6% to 12%, and current data is clearly signaling that the risk to our estimate may be to the upside,” stated Donald Broughton, analyst and commentator for the Cass indexes. “We believe that this is the strongest normalized percentage level of truckload pricing achieved since deregulation (normalized meaning except for extreme periods of recovery from recession).”

The latest data point shows total intermodal pricing (all-in intermodal costs) rose 10.9% YoY in June to 136.7, the largest YoY increase since August 2011.  June marked the twenty-first consecutive month of increases, and brings the three-month moving average up to 8.8% YoY.

“Tight truckload capacity and higher diesel prices are creating incremental demand and pricing power for domestic intermodal,” stated Donald Broughton, analyst and commentator for the Cass indexes. “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, and higher in certain regions within the U.S.”

Category: General Update, News