JOC Staff | Nov 09, 2012 11:03AM EST
Truckload pricing in October increased 0.9 percent from the same month in 2011, compared with a 0.5 percent year-over-year increase in September, and 0.3 percent from the previous month, according to the Cass Truckload Linehaul Index.
The year-over-year gap in the growth of truckload rates tracked by the index showed a slight uptick after collapsing throughout 2012, falling from 8.2 percent in February to 1.0 percent in August.
An international trucking index showed that freight rates in Europe have also been sliding this year.
The truckload pricing index, which uses January 2005 as its base month, remained basically stable at a reading of 109.8 in October, after July, August and September each posted a reading of 109.5.
Costs seem to be holding steady due to tightening in both supply and demand, Cass Information Systems said. Supply continues to shrink because of factors such as CSA 2010, hours of service, tight financing, higher equipment costs and acquisitions; while demand for truckload freight movements has not picked up this season as predicted.
Intermodal rates were also relatively even in October, falling 0.1 percent from September and 0.9 percent year-over-year, according to the Cass Intermodal Linehaul Index.
The intermodal pricing index, which also uses January 2005 as its base, stayed flat with 102.0, the same as September.
The volatile fuel market will be the main cause of intermittent swings in price in the near term, but rates are expected to remain subdued because of the large number of containers coming on line and aggressive pricing by carriers focused on ramping up intermodal, said Avondale Partners’ October report.