The Cass Truckload Linehaul Index fell another 1.2% year over year in May after declines of 0.6% and 2.3% in March and April respectively.
With three consecutive months of price declines, the domestic truckload market continues to face softer demand and excess capacity. Driver pay increases, overall fleet growth, reduction in carrier bankruptcies, and an easing of the 34-hour restart rule are some of the contributing factors, according to the report.
The Cass Truckload Linehaul Index is designed to be an accurate, timely indicator of market fluctuations in per-mile truckload pricing. The index isolates the linehaul component of full truckload costs from other components (e.g. fuel and accessorials), providing a reflection of trends in baseline truckload prices.
Data within this unique index is derived from actual freight invoices paid on behalf of Cass’ clients, which totaled $25 billion in 2015. The index uses January 2005 as its base month.
Likewise, The Cass Intermodal Price Index fell another 2.0% year over year in May, representing 17 consecutive months of year over year declines.
Avondale Partners reiterated in its monthly report that intermodal rates are expected to continue declining for the remainder of 2016 “as the dramatic drop in diesel prices … takes its toll on U.S. domestic demand.” Although they predict that domestic container may grow in the mid to low single digits through 2016, Avondale added “that is dependent upon demand in longer lengths of haul growing fast enough to offset the loss of volume in shorter lengths of haul, particularly in the East.”