Truck pricing is continuing to increase due to a capacity crunch “that has persisted well beyond the weather disruptions early this year,” according to Cowen and Company.
In an investor note, the firm said both the truckload and less-than-truckload industries are experiencing increased rates.
“We have heard from truckload shippers who, as recently as a couple of weeks ago, were struggling to find capacity for days at any price. This could mean that the spillover effect from TL to LTL may have become more substantial,” the firm noted.
Even with more demand in the truckload industry, Cowen said, LTL pricing would still increase because some of that demand will be grabbing LTL network capacity.
The firm noted that LTL carriers that reported tonnage increases in April have continued to see improving results.
“We are raising our LTL earnings expectations and believe the pricing environment has improved further as tonnage levels remain robust, driven by demand strength and increased truckload capacity tightness,” the firm wrote.