Truckload Pricing Continues to Stabilize
After being negative for 13 consecutive months, the market fluctuations in per-mile truckload pricing, referred to as the Cass Truckload Linehaul Index, appears to be stabilizing according to findings from Broughton Capital.
Over the past four months, the Cass Truckload Linehaul Index has remained positive. Notably, the July Cass Truckload Linehaul Index increased by 2.3% compared to July of 2016.
July’s pricing was even more promising when viewed sequentially versus June, up 1.9% from last year. Broughton’s pricing forecast has improved for 2017, as the current strength being reported in spot rates is leading the group to believe that contract pricing rates should keep rates in positive territory through the end of the year.
In contrast, the Cass Intermodal Price Index in July, which refers to market fluctuations in per-mile U.S. domestic intermodal costs, only rose 0.6% compared to July of 2016. This marks the tenth consecutive month of increases; however, pricing momentum has dramatically slowed.
Since the Cass Intermodal Price Index established its most recent peak in March, as diesel neared $2.60 a gallon, the Cass Intermodal Price Index has sequentially trended lower as diesel has fallen back toward $2.50 a gallon.
What’s more, as the price of oil has recovered from the oversold lows of February 2016, and established a price more consistent with the marginal cost of production from domestic sources, Broughton Capital expects intermodal demand and pricing to remain positive compared to 2016 for the next 3 to 6 months.
Category: Featured, General Update, News
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