Truckload contract rate increases riding steady above 10%
The new index from SONAR shows that carriers have been trying to get rate increases since before the market turned, now they are getting what would have been the equivalent of a few years…
Chart of the Week: Contract Rate Change Direction Index – USA SONAR: CRCD.USA
Shippers who have reset truckload contracts over the past several months are paying about 13% more than the rates they replaced. That is the reading from SONAR’s new Contract Rate Change Direction index (CRCD.USA), which stood at 13.11% on Oct. 22, up from 3.53% a year earlier.
This index measures the average percentage difference between a new contract base rate and the one it replaced within an established shipper-carrier relationship. It counts a change only when the old rate had held steady for more than 90 days, which filters out short-term noise and isolates true bid-cycle repricing. The index is a seven-day rolling average, updated daily.
The metric strips out the effects of temporary route guide waterfalling and contract-plus pricing to show more durable changes in rates. Route guide failures say a lot about market pressure, but the rates they produce can overstate what eventually becomes the sustained cost.
This story was originally published by FreightWaves. Read the full story at FreightWaves →
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