Domestic truckload rates jumped 6.5 percent for the month compared to February 2017, following year-over-year increases of 6.5 percent and 6.2 percent, respectively, in January and December, according the latest Cass Truckload Linehaul Index.
Domestic U.S. truckload (TL) rates continued their extended growth streak in February 2018, increasing 6.5 percent compared with the same month a year ago, according to the latest Cass Truckload Linehaul Index.
The February growth to a reading of 131.3 represents the 11th consecutive month of year-over-year gains for the index, which rose 6.2 percent in December and 6.5 percent in January.
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 power looks set to continue strengthening as the year goes on.
“In just the last seven months, our pricing forecast [for 2018] has improved from -1 percent to 2 percent, to 6 percent to 8 percent, and we now have reason to believe the risk to our estimate may 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.”
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