Truckload rate growth accelerates in January

Domestic truckload pricing jumped 6.5 percent for the month compared to January 2017 following year-over-year increases of 6.3 percent and 6.2 percent, respectively, in December and November, according the latest Cass Truckload Linehaul Index.    Growth in domestic U.S. truckload (TL) rates continued to accelerate in January 2018, increasing 6.5 percent compared with the same month a year ago, according to the latest Cass Truckload Linehaul Index.
   The January growth represents the tenth consecutive month of year-over-year gains for the index, which rose 6.3 percent in December and 6.2 percent in November.
   The index’s reading of 133.5 for the month fell just short of the record high of 134.5 set in December 2017.
   The TL Linehaul index had fallen for 13 straight months (from March 2016 through March 2017) prior to the recent growth, but Cass said that not only are there no signs that momentum is slowing, pricing strength looks set to continue into this year.
   “In just the last seven months, our pricing forecast has increased from -1 percent to 2 percent, to 6 percent to 8 percent, and now giving us reason to believe the risk to our estimate continues to be to the upside,” said Donald Broughton, an economist that analyzes the TL index and the North American freight transportation industry at large for Cass. “The current strength being reported in spot rates tells us contract pricing rates should keep rates in positive territory well into 2018.”