Weaker quantity developments in July didn’t maintain truckload linehaul charges from ripping greater, based on a month-to-month report from Cass Info Methods.
Cass’ TL linehaul index, which tracks charges excluding gasoline and accessorial surcharges, elevated 2.3% from June and was 8.6% greater 12 months over 12 months. July marked 19 consecutive y/y will increase and the most important in 4 years. (The dataset is up 11.2% over the previous two years.)
The linehaul index consists of for-hire spot charges however is traditionally closely weighted to contract charges.
In the course of the second-quarter earnings season, publicly traded carriers famous “a flight to high quality,” as shippers have grown more and more selective about their companions. Potential authorized blowback from choosing a non-compliant service, or one that may’t ship capability as promised throughout peak season, had been among the many causes.
Schneider Nationwide’s (NYSE: SNDR) one-way fleet captured double-digit charge will increase on contract renewals within the quarter. The corporate flagged the loss of a big devoted buyer, however stated it plans to put that tools into the spot market to make the most of favorable market dynamics.
Freight shipments captured by Cass (NASDAQ: CASS) fell 4.8% y/y throughout July, an acceleration from a 4.1% y/y decline in June, and additional separation from Might, when the index was down simply 1.2% y/y and seemingly approaching a constructive inflection. On a seasonally adjusted foundation, shipments had been down 2.2% from June, which was down 2.9% from Might.
All home transportation modes are included within the index, however TL accounts for over 50%, with less-than-truckload representing roughly 25%.
“A few of the softness is the results of greater gasoline costs, however to a big extent, volumes are nonetheless gentle as a result of capability is declining,” the report stated. “The Cass knowledge are trucking intensive, amongst different modes, however rail intermodal is gaining share from trucking this 12 months, additionally pressuring this index.”
(Whole intermodal carloads on the U.S. Class I railroads elevated roughly 5% y/y in July.)
| July 2026 | y/y | 2-year | m/m | m/m (SA) |
| Shipments | -4.8% | -11.4% | -2.6% | -2.2% |
| Expenditures | 9.1% | 9.6% | -3.4% | -2.1% |
| TL Linehaul Index | 8.6% | 11.2% | 2.3% | NM |
Showing at an investor convention final week, Werner Enterprises’ (NASDAQ: WERN) Chairman and CEO Derek Leathers was unfazed by the seasonal slowdown in July.
“There’s no concern, if you’ll, from my perspective about … a few of these little snippets of stories that we’ve seen in July,” Leathers stated Tuesday at Deutsche Financial institution’s Chicago Industrials Summit. He stated the supply-led restoration remains to be within the early levels, noting that the present administration shouldn’t be backing off its crackdown on unhealthy actors.
Werner noticed the fruits from its one-way fleet restructuring in the course of the second quarter.
Income per truck per week (excluding gasoline surcharges) jumped 28% y/y, as miles per truck had been up 16% and income per whole mile elevated 10%. The sizeable charge improve occurred although Werner had the added headwinds of carrying solely half the spot market publicity it had a 12 months in the past, and a mean size of haul that was 100 miles larger y/y. (Longer lengths of haul normally accompany decrease per-mile charges.)
The service’s third-quarter forecast requires a ten% to 13% y/y improve in charge per mile. It’s additionally trying to develop the fleet once more, after almost chopping it in half for the reason that finish of 2022. (A few of the tools was moved to the corporate’s devoted fleet.)
The Cass report stated the shipments index could be down 3% y/y in August if typical seasonal patterns happen.
Cass’ expenditures index, which measures whole freight spend together with gasoline, was up 9.1% y/y in July, however off 3.4% from June (down 2.1% seasonally adjusted). The decline in shipments and an increase in diesel costs (down 1% sequentially however up 31% y/y) fashioned the change.
Knowledge used within the indexes comes from freight payments paid by Cass, a supplier of cost administration options. Cass processes $37 billion in freight payables yearly on behalf of consumers.
Why it issues? July knowledge from Cass Info Methods highlights a big development within the TL market. Regardless of tepid demand, linehaul charges proceed to surge as non-compliant capability is being eliminated.
Extra BigRig articles by Todd Maiden:
- J.B. Hunt’s ‘summer season of many minibids’
- Werner not deterred by July slowdown
- Proficient Auto Logistics’ newest deal pushes market share to 25%
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