A Measure of Market Fluctuations in Truckload Costs
As the nation’s largest payer of freight bills, Cass manages $25 billion annually in freight spend, enabling Cass to compile meaningful 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. Cass partners with the securities analyst firm Broughton Capital LLC, who provides the analysis we offer each month.
June’s Cass Truckload Linehaul Index continued the increasing rate of acceleration that began in 2017 by posting an 9.5% YoY increase to 134.7, the largest YoY percentage increase in this index to date (the base year is 2005). After signaling an industrial recession in the U.S. and being negative for 13 months in a row (from March 2016 through March 2017), the Cass Truckload Linehaul Index has not only been positive now for 15 consecutive months, but the strength is continuing to accelerate. "We are increasing 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 be to the upside," stated Donald Broughton, 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)."
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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. The index uses January 2005 as its base month.
Cass partners with the securities analyst firm Broughton Capital LLC to publish this Index.
Other Transportation Indexes from Cass
or contact Tom Bertolino at 314-506-5932