Truckload linehaul contract rates in December rose 7. 4
percent from the same period a year ago, according to data
released by two firms that publish a monthly rate-tracking
index. Gains of this magnitude, the firms said, will extend
at least through the first quarter of 2015.
At the same time, an index of rail intermodal per-mile
costs—which reflect rates paid by intermodal users—rose
in December by only 1. 5 percent year over year, one of the
weakest months for intermodal pricing in an otherwise
decent year. The firms, freight audit and payment company
Cass Information Systems and investment firm Avondale
Partners, forecast that intermodal rates would decline in
2015 as the recent dramatic drop in diesel fuel prices leads
intermodal shippers to convert their loads back to truckload.
Avondale said in a statement that it predicts a 4- to
9-percent average increase in truckload contract rates
in 2015. The actual increase for each carrier will depend
on the extent of the increases it obtained last year and
when the increases took effect, it said. The strong pricing
environment is being driven by an “extraordinarily tight”
market for qualified truck drivers and by increasing freight
demand, the firm said. Although not mentioned in the
Cass-Avondale statement, other sources have noted that
driver wage increases are also being passed through to users
in the form of higher rates.
By contrast, escalation in intermodal contract rates has
begun to slow from the 3-percent year-over-year pace
achieved through much of last year’s second half, Avondale
said. A drop of more than 15 cents per mile in truckload
fuel surcharges since oil and fuel prices began to fall last
summer will challenge demand and pricing power for
domestic intermodal services, Avondale said.
Truckload contract rates to rise, intermodal rates to drop,
index projects
alliances
Tiger Cool Express LLC, a temperature-controlled inter-
modal transporter of produce and food products, has
signed a purchase and sale agreement to acquire
200 53-foot refrigerated insulated rail containers from
Qingdao CIMC Special Reefer Co. Ltd. … UTi Worldwide
Inc., a global supply chain services and solutions pro-
vider, and Changjiu Logistics Co. Ltd., an independent
automotive logistics company in China, have officially
launched a strategic partnership. … Jaxport’s board of
directors unanimously approved an expanded, long-
term lease with Crowley Liner Services Inc. Under the
agreement, Crowley will relocate its Puerto Rican service
to Jaxport’s Talleyrand marine terminal. In related news,
Volkswagen Group of America has chosen Jaxport as the
location of its import facility and Southeastern distribu-
tion center. … Hyster Co. has delivered its first container
handlers with Tier 4 Final engines to a terminal at the
Port of Los Angeles. … Dot Foods, a U.S. foodser-
vice redistribution company, has selected International
Business Systems’ (IBS) Dynaman yard management
system to meet the growing needs of its nine distribu-
tion centers. In addition, Victory Packaging has selected
the IBS Dynaman warehouse management software
to oversee the organization’s 65-plus warehouses and
DCs. Finally, Algol Chemicals has integrated the IBS
Enterprise solution into all of its Northeast European
subsidiaries’ operations. … Combi Packaging Systems
LLC, a maker of customized end-of-the-line packaging
equipment, and Motion Controls Robotics, a developer
of robotic automation solutions, have released a new
robotic solution for end-of-the-line packaging opera-
tions. … Unarco, a supplier of engineered warehouse
and DC storage systems, has purchased the assets and
intellectual property of Creative Storage Systems, which
manufactures and engineers gravity flow systems for the
material handling industry. Unarco will launch a new
division, Concentric Storage Systems, that will feature
these engineered designs for carton flow and pallet
flow storage systems. … Checkout Supermarkets has
selected HighJump’s Warehouse Advantage warehouse
management system to boost operational speed and
inventory visibility. In addition, HighJump Software’s
TrueCommerce EDI Solutions Group has partnered with
NumberCruncher.com Inc. to deliver an integrated solu-
tion that allows mutual customers to automate and
accelerate order processing by linking their electronic
data interchange (EDI), inventory management, and
QuickBooks accounting systems. … Port Manatee in
Palmetto, Fla., is handling imports of several heat-recov-
ery steam generators and other oversized units that will
be used to expand Tampa Electric’s nearby power plant.
… Crown Equipment Corp. supplied the material han-
dling equipment for International Agri-Center’s World
Ag Expo. … NFI, a supply chain solutions provider, has
been selected by Rent-A-Center to support a key sourc-
ing and distribution initiative.
