Cass Truckload Linehaul Index
A Measure of Market Fluctuations in Truckload Costs
As the nation’s largest payer of freight bills, Cass manages more than $23 billion annually in freight spend, enabling Cass to compile meaningful logistics data that serves as an indicator of transportation industry trends. The Cass Truckload Linehaul Index™ is a measure of market fluctuations in per-mile truckload linehaul rates, independent of additional cost components such as fuel and accessorials.
Truckload linehaul rates paid in January increased 2.9% year over year, resulting in the largest year-over-year increase in linehaul rates since last February. Recent spot market data, combined with increasing demand and a high number of trucking companies exiting the market, all seem to indicate that rates – both contracted and in the spot market – will continue to rise.
In his January analyst report, Donald Broughton stated: “We believe that persistent cost pressures, relatively tepid demand, soft pricing, increasing regulatory pressure, and a less robust used truck market have taken their toll on smaller carriers over the last two years.” As a result, the number of trucking companies that went out of business in 2013 exceeded that of the prior two years combined.
Total tonnage and average weight per load are both rising. In the fourth quarter of 2013, tonnage was up almost 10% over 2012.
View data points from 2005-present.
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The Cass Truckload Linehaul Index™ is 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 an accurate 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 over $23 billion in 2013. The index uses January 2005 as its base month.
Cass partners with the securities analyst firm Avondale Partners LLC to publish this Index.
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