Stephens reports strong Q2 pricing trends for TL carriers   

Stephens Inc. released their second quarter 2011 update on publicly traded TL carriers reporting that rates per loaded mile excluding fuel surcharge increased 5.2% over the same quarter last year and 2.8% over Q1 2011. This marks 5 straight quarters of year-over-year gains. Stephens is expecting second half 2011 TL rates to increase by 3-4%. 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. Average length of haul dropped from 640 miles in 2010 to 615 in Q2 2011, resuming a long-run downward trend. We are in a period of rising TL rates that is expected to accelerate going into 2012 if there is any economic recovery to accompany the capacity and productivity-damaging regulations such as CSA and changes in hours of service.

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