Truckload Rates Surge to Near 3-Year High Amid Freight Pressures

Truckload linehaul rates in the United States reached their highest level in nearly 3 years in February, according to the latest data from Cass Information Systems. The Cass Truckload Linehaul Index, which measures changes in per-mile linehaul rates, increased by 1.5% in February compared to the previous month. This brought the index to 146.8, its highest point since May 2019. The surge in truckload rates comes despite ongoing pressures on freight volumes. According to FreightWaves, the Cass Freight Index - which tracks both shipment volumes and expenditures - showed freight volumes remained 'pressured' in February, down 1.4% year-over-year. 'The Cass Truckload Linehaul Index continues to reflect the strong pricing power of truckload carriers, even as freight volumes remain pressured,' said Tim Denoyer, vice president and senior analyst at ACT Research, in comments to FreightWaves. The rise in truckload rates has been driven by a combination of factors, including tight capacity, strong demand, and inflationary pressures on carrier costs. With the economy continuing to recover from the COVID-19 pandemic, shippers have been competing for limited trucking capacity, allowing carriers to command higher rates. Industry analysts expect truckload rates to remain elevated in the coming months, though the pace of increases may begin to moderate. Much will depend on how freight volumes and the broader economic outlook evolve in 2023.