Truckload pricing dipped another 1.6 percent in July 2016 compared to the same 2015 period, the fifth consecutive month of year-over-year declines, according to the latest Cass Truckload Linehaul Index.
Truckload rates fell another 1.6 percent in July 2016 compared with the previous year, the fifth consecutive month of year-over-year declines, according to the latest Cass Truckload Linehaul Index.
The July decrease followed pricing declines of 0.6 percent in March, 2.3 percent in April, 1.2 percent in May and 1.8 percent in June.
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, newer and more reliable trucks, and an easing of the 34-hour restart rule, according to analysts at Avondale Partners.
The firm reiterated its pricing forecast range of -3 percent to 1 percent year-over-year growth for the remainder of the year.
Truckload rates fall for fifth straight month in July
