Cass Truckload Linehaul Index

December’s Cass Truckload Linehaul Index (measuring changes in linehaul rates) continued the acceleration that began in November by posting a 6.2% YoY increase, to an all-time index high of 134.5. After being negative relative to the previous years’ for 13 months in a row (from March 2016 through March 2017), the Cass TL Linehaul Index has not only been positive now for nine months in a row, but pricing continues to increase. "In just the last six months, our pricing forecast has increased from a -1% to 2% change, to 6% to 8%, and now gives us reason to believe the risk to our estimate may be to the upside," stated Donald Broughton, analyst and commentator for the Cass Indexes. "The current strength being reported in spot rates is leading us to believe contract pricing rates should keep YoY rate comparisons in positive territory well into 2018."

Cass Intermodal Price Index

The latest data point shows total intermodal pricing rose 4.0% YoY to an index point of 134.3 in December. This marks the fifteenth consecutive month of increases, and pricing momentum appears to be increasing. Higher diesel prices are creating demand and pricing power for domestic intermodal. "Throughout 2018, we continue to foresee oil trading in the $45 to $65 range and diesel in the $2.50 to $3.25 range (without the refining interruption pressure produced by hurricanes or other catastrophic events)," stated Donald Broughton, analyst and commentator for the Cass indexes.