Truckload Linehaul Index Rises in December

In December, the Cass Truckload Linehaul Index (measuring truckload linehaul rates paid during the month) rose 7.4% year over year.

With demand increasing and capacity remaining extraordinarily tight, it is expected that contract rate increases will continue to drive our index up.

According to Avondale Partners, “We would point out that contract pricing (which applies to 95+% of the public carriers’ freight) has been accelerating after a drawn-out bid season. As a result, although spot market pricing has decelerated somewhat (it remains strong), we are not surprised to see our Index continue to post mid-to-high single digit gains and we expect this to continue into 1Q’15.”

The group’s statement continued: “We are raising our contract TL pricing prediction to an increase of 4% to 9% in 2015, depending on how much [of a rate increase] each carrier was successful in obtaining in 2014 and when those rate increases were achieved.”

Category: Featured, General Update