Transportation/Logistics October Domestic Truck, Intermodal, and Rail Trends

November 1, 2013

Domestic freight demand firming in October after soft start to month, but outlook remains guarded. Anecdotally, demand trends moderated to end September and continued into early October, largely a result of soft retail trends. Channel checks reflect firming trends to end October, but retail demand outlook remains unsettled; and few near-term catalysts support reaccelerating volume growth in 2014. Core pricing in Truckload (+1-2% yoy) and intermodal (+0-1%) remains pressured but positive, while LTL pricing moderated in 3Q13 (+2-3%, from +3-4%).