Truckload linehaul rates rip higher in July, Cass says
Truckload rates surged in July even as demand remained squishy, monthly data from Cass Information Systems showed. The post Truckload linehaul rates rip higher in July, Cass says appeared first on FreightWaves .
Truckload linehaul rates surged higher in July, according to Cass Information Systems, despite weaker volume trends. The company's TL linehaul index, which excludes fuel and surcharges, rose 8.6% year-over-year and 2.3% from June. This represents the largest year-over-year increase in four years and marks 19 consecutive quarterly increases.
The index, which heavily weighs contract rates, also shows a 7-day moving average of initial reporting of dry van contract rates. During earnings season, carriers noted a "flight to quality" as shippers became more selective about partners. The tender rejection index, a proxy for truck capacity, showed a tight market in July. Freight shipments captured by Cass fell 4.8% year-over-year in July, down from June's 4.1% decline.
The drop is attributed to higher fuel prices and declining capacity. Werner Enterprises, a major carrier, saw revenue per truck per week increase 28% year-over-year, despite carrying only half the spot market exposure and a longer average haul. The company expects a 10-13% year-over-year increase in rate per mile for Q3.
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