Truckload and LTL rates to hit new highs in third quarter

Industry

โดย FreightWaves·Read original

Summary · why it matters

Truckload and less-than-truckload rate indexes are expected to reach new highs in the third quarter as the freight industry recovers from a nearly four-year downturn. The TD Cowen-AFS Freight Index shows the truckload rate-per-mile component hit a 14-quarter high in the second quarter, 16% above the January 2018 baseline, and is forecast to rise to 17.7% above the baseline in the third quarter. The less-than-truckload rate-per-pound component reached an all-time high in the second quarter, 76.5% above the 2018 baseline, and is projected to increase 30 basis points sequentially in the third quarter. Capacity constraints, higher diesel fuel prices, and accelerated general rate increases by carriers such as ArcBest and Saia are driving the increases. The report also notes that more than 48,000 non-compliant drivers have left the industry over the past year, further tightening supply.