Stephens reports modest year-over-year LTL rate increases in Q1   

Stephens Inc. reported that first quarter LTL rates increased 2.6% from Q1 2010 but dropped 1.6% from Q4 of 2010. Stephens is predicting a 2% overall increase in LTL rates in 2011, but they don't see full recovery of pre-recession LTL pricing even through 2012. In 2010 LTL rates dropped 3.7% (117.7 to 113.7) which followed a larger 4.6% drop from 2008 to 2009. In 2009, LTL carriers were pricing aggressively to win share from weaker competitors. The challenges facing LTL carriers are apparent with pricing in 2011 roughly equivalent to 2002 pricing, despite increases in most trucking related costs. Some of the capacity issues that will impact the TL segment, like CSA 2010 and hours of service, are not as prevalent in the LTL segment.

Graph reproduced with permission from Stephens Inc. For more information contact: Jack Waldo at jwaldo@stephens.com or Tyler Bozynski at tyler.bozynski@stephens.com