Cass and Broughton Capital data highlights another strong month for truckload and intermodal rates

Pricing for both truckload and intermodal freight movements were again strong in August, according to data in the most recent editions of the Truckload Linehaul Index and Intermodal Index from Cass Information Systems and Broughton Capital.

This pricing data is part of the Cass Truckload Linehaul Index and the Cass Intermodal Linehaul Index, which were both created in late 2011. The indices are based on actual freight invoices paid on behalf of Cass clients, which accounts for more than $23 billion annually and uses 2005 as its base month.

According to Cass and Broughton Capital, the truckload index “isolates” the linehaul component of full truckload costs from other components such as fuel and accessorials, which, in turn, provides an accurate reflection of trends in baseline truckload prices.

Truckload rates, which measure linehaul rates, headed up 11.1% annually in August, which the report said marks the strongest percentage increase in the history of the index, as well as posting an all-time high on a nominal basis.

“Three months ago, we increased our realized contract pricing forecast for 2018 from a range of 6% to 8% to a range of 6% to 12%, and current data is clearly signaling that the risk to our estimate may still be to the upside,” wrote Donald Broughton, principal for Broughton Capital, and analyst and commentator for the Cass indexes.  “We believe that this is the strongest normalized percentage level of truckload pricing achieved since deregulation (normalized meaning except for extreme periods of recovery from recession).”

On the intermodal side, the report said that total intermodal pricing, which is comprised of all-in intermodal costs) saw another month of gains, up 11.4% annually in August, adding that on a nominal basis the intermodal index reached its third-highest level on record and the 23rd consecutive month of increases. What’s more, the three-month moving average through August is up 11.4% annually compared to the same period a year ago.

“Tight truckload capacity and higher diesel prices are creating incremental demand and pricing power for domestic intermodal,” wrote Broughton. “Longer term, we continue to foresee oil trading in the $45 to $65 range and diesel in the $2.50 to $3.25 range throughout 2018, and even higher in certain regions within the U.S.”