Truckload rates are on the rise   

Stephens Inc. released their 3^rd quarter update on publicly traded TL carriers indicating that in Q3 rates per loaded mile excluding fuel surcharge were up 2.4%% from Q2 of this year. That is the third largest sequential increase in the 18-year history of the index. From 2009, the Stephens TL index is up 4%. The data does not necessarily represent the entire TL industry as the publicly traded carriers tend to be larger and more successful in general so are also likely to be more successful in raising rates. In addition, shorter lengths of haul increase revenue per mile without necessarily being indicative of price increases. Clearly though, we are in a period of rising TL rates that is expected to accelerate in 2011 if there is any economic recovery to accompany the upcoming capacity and productivity-damaging regulations such as CSA 2010 and changes in hours of service. Stephens is predicting TL rates will increase by 3-5% in 2011.

Graph reproduced with permission from Stephens Inc. For more information contact: Jack Waldo at jwaldo@stephens.com or Justin Long at justin.long@stephens.com