Truckload Shipping Up 5.5% from Last October

Truckload shipping costs (linehaul only) increased 5.5% from last October. Linehaul costs have not only been up over 2016 for the last seven months, but these increases have been growing larger.

According to DAT Solutions: “In just the last 120 days, our pricing forecast for 2017 has improved from -1% to 2%, to 0% to 2%, to 2% to 4%, as the current strength being reported in spot rates by DAT Solutions is leading us to believe contract pricing rates should keep rates in positive territory through the end of the year.”

Total intermodal costs (per mile) rose 1.9% year over year in October, with our index now at 132.8. Compared to the month before (September), intermodal costs increased 2.9%. October marked the thirteenth consecutive month of year-over-year increases.

The index established its most recent peak in March at 135.4 (as diesel flirted with $2.60 a gallon) and then has sequentially trended lower since (as diesel fell back toward $2.50 a gallon in July).

Donald Broughton, analyst and commentator for the Cass indexes, predicts another rise: “We now expect it to exceed March’s peak by the end of the year. Longer term, we continue to foresee oil trading in the $45 to $55 range and diesel in the $2.25 to $2.75 range throughout 2017 (sans the refining interruption pressure produced by the recent hurricanes).”

 

Category: General Update