Truckload Linehaul Rates Continue to Rise
According to Cass Information Systems, truckload linehaul rates continue to rise.
February saw costs that were 2.8% higher than the same month last year. And while, on average, truckload rates fall .5% from January to February, this year only saw a .1% decline.
With demand increasing and capacity decreasing (the last two quarters have witnessed an unusually high number of carriers exiting the business), capacity is tight. The 2014 bid season – which is well under way – is expected to be a tough one for shippers.
Transportation sector analysts are forecasting rate increases between 3% and 6% in 2014.
Outlook for Intermodal Pricing
Throughout most of 2013, intermodal freight costs held steady with – or even fell below – costs from the year before. 2014, however, will likely shape up differently, with intermodal costs consistently coming in higher than comparative 2013 levels.
January costs were 1.7% higher than the prior year, and February saw costs at 1.4% higher than last year. The capacity problem for truckload freight is pushing more loads toward intermodal, likely causing some upward pull on intermodal pricing.
According to the transportation analysts at Avondale Partners: “Although we expect the pricing dynamic in intermodal to remain competitive and see linehaul rates remaining relatively flat in the near term, we do believe that intermodal pricing could improve modestly in 2014 if truckload capacity continues to be squeezed.” 
Category: Featured, General Update, Management
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
