Truckload Linehaul Pricing Up

Truckload linehaul pricing rose 3.2% year over year in September after 3.7% and 3.6% increases in August and July, respectively.

According to Avondale Partners, expectations are for continued increases for the remainder of 2015, with their prediction for price increases in the range of 3.5% to 5.5%. They have softened their earlier bullish stance on pricing given several factors that have contributed to an increase in overall capacity.

The dramatic fall in diesel prices continues to put downward pressure on intermodal pricing, with a 2.3% year-over-year decline in September.

“We expect intermodal rates will continue to decline in 2015,” stated analysts with Avondale Partners. “We concede that the extent to which loads can be shifted from domestic intermodal back to over-the-road truck is dependent on trucking capacity, but the ~$0.20 a mile decline in fuel surcharges collected by truckers in the last year (with most of that decline coming in the most recent 4-5 months) has to challenge demand and pricing power for domestic intermodal, especially in shorter lengths of haul.”

 

Category: Featured, General Update