Truckload linehaul rates paid by North American shippers in June were 5.2 percent higher than in June of last year, the Cass Truckload Index shows.
“As demand continues to increase while capacity exits the marketplace, this year’s procurement events and contract negotiations have not, in general, been ending favorably for shippers,” stated a June report.
Expectations are that capacity will be squeezed even more because of stronger industrial production, increased consumer spending and the continued recovery of the housing sector.
Intermodal costs, although remaining fairly high compared with the past several years, “seem to have peaked for this year,” the report noted.
In June, total intermodal transportation costs were 3.8 percent higher than in June of last year. On average for 2014, intermodal costs have been up 2.1 percent year-over-year, with the difference greater in the last three months, partially due to rising diesel costs.
For the most part though, it’s a supply and supply and demand issue.
The Association of American Railroads has reported that U.S. intermodal volumes are up significantly over last year: 9 percent in April, 8 percent in May, and 7 percent in June.
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