Truckload pricing dipped another 1.8 percent in June 2016 compared to the same 2015 period, the fourth consecutive month of year-over-year declines, according to the latest Cass Truckload Linehaul Index.
Truckload rates fell another 1.8 percent in June 2016 compared with the previous year, the fourth consecutive month of year-over-year declines, according to the latest Cass Truckload Linehaul Index.
The June decrease followed pricing declines of 0.6 percent in March, 2.3 percent in April and 1.2 percent in May.
Although the negative growth in March was the first since May 2010, pricing growth had steadily contracted over the previous 12 months, from 5.1 percent year-over-year growth in March 2015 to 3.8 percent in April, 3.5 percent in May, 3.6 percent in June and July, 3.7 percent in August, 3.2 percent in September, 1.9 percent in October, 1.6 percent in November, 1.1 percent in December, 0.4 percent in January and 0.5 percent in February.
The logistics payment solutions provider attributed the decrease in rates primarily to low demand levels and excess capacity.
Factors contributing to excess capacity include driver pay increases, overall fleet growth, a reduction in carrier bankruptcies and an easing of the 34-hour restart rule, according to analysts at Avondale Partners.
The firm has further adjusted its pricing forecast range downward to -3 percent to 1 percent for the remainder of the year.
Negative truckload rate growth continues in June
