Trucking and intermodal rates are mixed in November, according to Avondale and Cass data

The most recent edition of the Truckload and Intermodal Cost Indexes from Cass Information Systems and Avondale Partners showed that truckload and intermodal rates for the month of November were mixed.

This pricing data is part of the Cass Truckload Linehaul Index and the Cass Intermodal Linehaul Index, which were both created in late 2011. The indices are based on actual freight invoices paid on behalf of Cass clients, which accounts for more than $23 billion annually and uses 2005 as its base month.

Cass and Avondale said the truckload index “isolates” the linehaul component of full truckload costs from other components such as fuel and accessorials, which in turn provides an accurate reflection of trends in baseline truckload prices.

Truckload rates in November, which measure linehaul rates only, saw a 1.6 percent annual gain, following increases of 1.9 percent and 3.2 percent, respectively, in October and September.

This range is in line with what Avondale expects in 2016, pegging rates to rise between 1 percent and 3 percent. The firm said it expects contract rates to “filter” into the index, it also cited other drivers for increased capacity, including carrier pay increases, suspension of the 34-hour restart rule as part of the federal hours-of-service mandate, and a decline in carrier bankruptcies.

Industry executives have said that with GDP currently under 2.5 percent rates are likely to remain lower than they would be if the economy was growing at a faster clip.

And were GDP expand to 3-3.5 percent, executives maintain there would be a legitimate over the road capacity crisis, whereas capacity is loose compared to where it was a year ago at this time.

November intermodal rates on an “all in” basis dropped 2.4 percent in November, coming on the heels of 3.2 percent and 2.3 percent declines in October and September, respectively.

Avondale said that with annual costs on the decline going back to October 2014, the ongoing decreases in diesel prices continue to hinder intermodal rate growth.

“Falling diesel prices has to challenge demand and pricing power for domestic intermodal, especially in shorter lengths of haul,” said Avondale.