Truckload Linhaul Rates Down 5 Consecutive Months

The Cass Truckload Linehaul Index (measuring changes in linehaul rates) declined 1.6% year over year in July – the fifth consecutive month of year-over-year declines.

Analysts at Avondale Partners predict that pricing will remain at -3% to 1% (comparably) for the remainder of 2016. Several factors continue to contribute to increased capacity including driver pay increases, newer and more reliable trucks, overall fleet growth and an easing of the 34-hour restart rule.

The Cass Intermodal Index (measuring all-in per-mile intermodal costs) fell 2.4% year over year in July, representing 19 straight months of declines. Historically, there is a “high degree of correlation between truckload and intermodal pricing,” according to analysts with Avondale Partners. As contract rates for trucking continue to lose strength and move further into negative territory, “[this] would imply even more potential weakness for intermodal pricing.”

Category: Featured