Dive Brief:
- TL’s Producer Price Index is once again falling but slowed to a rate of negative 1.9% in July year over year, per a federal Producer Price Index.
- In contrast, LTL pricing last month had some of its highest YoY upticks, rising 7.1%.
- The July uptick was the second highest change over the past year, falling just behind an April 2024 surge of 8.2%.
PPI for LTL grows, while TL index nears positive change
Dive Insight:
Pandemic-related squeezes caused peaks in the pricing indices in early 2022, and the PPI for TL has lingered for over a year. But LTL’s index has seen bigger glimmers of hope.
The non-seasonally adjusted PPIs, subject to revision, show a change in selling costs from the seller’s perspective, as opposed to that of consumers, the Bureau of Labor Statistics notes.
Additionally, Michigan State University’s Professor Jason Miller noted on LinkedIn that operating costs have risen faster than rates compared to pre-COVID levels. He further warned that dry van TL pricing appears to remain stalled throughout H2 2024.
The stubborn downturn has showed signs of slowing or reversal, though, with analysts suggesting the market has bottomed out.
“Spot truckload freight volumes in July were stable for the second straight month and up more than 10% year over year, a signal that more than two years of deteriorating demand for truckload services may be nearing an end,” DAT Freight & Analytics said Friday.
