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Cass Truckload Linehaul Index on downward slide, falling 0.6pc in March
THE Cass Truckload Linehaul Index decreased 0.6 per cent year on year in March, the first negative price change since May 2010, reports the American Journal of Transportation.
Analysts with Avondale Partners indicated that risks remain to the downside to their 2016 forecasted pricing range of -1 per cent to 2 per cent.
The bearish tone is due largely to continued over-capacity which "is a negative to pricing especially in the spot market".
The Cass Intermodal Index continued its downward slide, falling another 3.0 per cent year on year in March after declines of 2.2 per cent and 3.8 per cent in January and February respectively.
Avondale Partners analysts "expect intermodal rates will continue to decline in 2016 as the dramatic drop in diesel prices and even more dramatic drop in oil takes its toll on US domestic demand".
Historically, there is a "high degree of correlation between truckload and intermodal pricing", they said. As contract rates for trucking continue to lose strength and move into negative territory, "this would imply even more potential weakness for intermodal pricing".
Analysts with Avondale Partners indicated that risks remain to the downside to their 2016 forecasted pricing range of -1 per cent to 2 per cent.
The bearish tone is due largely to continued over-capacity which "is a negative to pricing especially in the spot market".
The Cass Intermodal Index continued its downward slide, falling another 3.0 per cent year on year in March after declines of 2.2 per cent and 3.8 per cent in January and February respectively.
Avondale Partners analysts "expect intermodal rates will continue to decline in 2016 as the dramatic drop in diesel prices and even more dramatic drop in oil takes its toll on US domestic demand".
Historically, there is a "high degree of correlation between truckload and intermodal pricing", they said. As contract rates for trucking continue to lose strength and move into negative territory, "this would imply even more potential weakness for intermodal pricing".
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