Truckload Linehaul, Intermodal Rates Continue Heading Higher
Linehaul rates for truckload shipping continue to rise, according to the latest Cass Linehaul Rate Index. On average, North American shippers paid 7.2% more in July of this year than last in their truckload linehaul rates.
With the concentrated 2014 bid season now over, and more than 95% of the public carriers’ freight based on contract rates, it is likely that the new contracts contain significantly higher rates than the ones they replaced, according to the investment firm Avondale Partners, which partners with Cass Information Systems to publish the index.
“The message on supply and demand is the same, freight volumes are growing, despite a June decline that should prove to be a brief seasonal dip, and capacity continues to shrink as a high number of carriers are exiting the business,” said Avondale.
When it comes to rate expectations, Avondale Partners said, “We continue to expect truckload pricing to rise 4-6% in 2014, with the higher end looking increasingly likely.”
Meantime, intermodal shippers also continue to see increased transportation costs in 2014, with all-in intermodal costs up 3.4% in July year over year, according to the Cass Intermodal Price Index.
With all these new inflations, the smart thing to do would be to rely on a trustworthy freight broker, like Q Ship USA, to get you the best prices and the best service your shipment deserves.