Truckload pricing dipped another 2.8 percent for the month compared to August 2015, the sixth consecutive month of year-over-year declines, according to the latest Cass Truckload Linehaul Index.
Truckload rates fell another 2.8 percent in August 2016 compared with the previous year, the sixth consecutive month of year-over-year declines, according to the latest Cass Truckload Linehaul Index.
The August decrease followed pricing declines of 0.6 percent in March, 2.3 percent in April, 1.2 percent in May,1.8 percent in June, and 1.6 percent in July.
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.
“While we have been predicting negative pricing, even we were surprised at how weak the August data point was,” said Avondale.
Truckload rates fall for sixth straight month in August
