Truckload Linehaul Index Dips
The Cass Truckload Linehaul Index, which tracks monthly changes in linehaul rates, declined 0.3% YoY in January after falling 0.9% and 1.5% in December and November respectively.
Although this represents eleven consecutive months of YoY declines, the drop in January was the smallest we’ve seen over that same time frame. After an extended period of soft demand and excess capacity, “we are…seeing some improvements in pricing power of truckers,” noted Donald Broughton with Avondale Partners.
The Cass Intermodal Price Index, measuring changes in total intermodal per-mile costs, rose 3.8% YoY in January, the largest YoY increase since October 2014 (influenced by the 21.7% YoY increase in fuel). Although diesel fuel prices have recovered from their early 2016 lows, “we do not expect a significant amount of sequential strength from intermodal,” stated analysts at Avondale Partners. “But,” they continued, “the current level of demand and pricing will produce a positive YoY comparison for the next 9 to 10 months.”
Category: Featured, General Update
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