Truckload & Intermodal Cost Indexes
In recent months the industry has seen significant challenges associated with the wide-spread truck power shortage. These challenges are well documented by many media outlets like The Journal of Commerce as a key reason for the rising truck mileage rates.
While we continue to partner with our core carriers to maintain service and rate levels the wide-spread trucking shortage is resulting in cost increases which are beyond our ability to influence.
Therefore effective immediately Crowley will be utilizing the CASS index to monitor costs and adjust inland rates in Tariffs and Contracts. The indexes can be found here: CASS Indexes.
The CASS Index level for Trucking reflects a 3
In January when CASS has completed posting data for the months of October, November and December we will review the quarterly average index values for Truck and Rail. If the indexes increase or decrease by more than 5% from the baseline amounts (121.3 Truck, 129.7.0 rail) we will announce the change and adjust the inland component of tariff and contract rates by an equal amount 30 days later. The new index amounts then becomes the new baseline amounts moving forward. We will review quarterly in January, April, July and October.
We also ask for your continued cooperation in providing us with as much lead time as possible when requesting Intermodal services. We appreciate your continued support and will do our part to minimize the effects to your supply chain.
The aforementioned Index and any adjustments will apply to all open tariff and contract shipments.