Truckload Linehaul Index Declines

The Cass Truckload Linehaul Index, which tracks monthly changes in linehaul rates, declined 0.8% YoY in February after falling 0.3% and 0.9% in January and December, respectively.

Although this represents twelve consecutive months of YoY declines, analysts at Avondale Partners have increased their pricing forecast to a -1% to 2% YoY change this year, stating that “the current strength being reported in spot rates … is leading us to believe contract pricing rates should move back into positive territory at least on a sequential basis.”

The Cass Intermodal Price Index, measuring changes in total intermodal per-mile costs, increased 4.9% YoY in February, the largest YoY increase since January 2012 (influenced by the 29% YoY increase in fuel). Analysts at Avondale Partners expect intermodal pricing to be stronger than last year, given that the price of diesel fuel has recovered from oversold lows. “The current level of demand and pricing will produce a positive YoY comparison for the next 9 to 10 months,” stated Avondale.

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