Rates dropped another 2.4 percent in November compared to last year, the tenth consecutive month prices have fallen, according to the latest Cass Intermodal Price Index.
Intermodal rates fell 2.4 percent in November 2015 compared to November 2014, according to the latest Cass Intermodal Price Index, which measures all-in per-mile costs.
Cass Information Systems Inc., a transportation intelligence analyst, said year-over-year rates were down for the tenth consecutive month. Intermodal rates dropped 3.2 percent in October, 2.3 in September, 1.9 percent in August, 2.9 percent in July, and 2.8 percent in June compared with the previous year.
The continued decline in rates since October 2014 can primarily be attributed to the fall in diesel prices, according to analysts with investment firm Avondale Partners. Global oversupply has caused crude oil prices to fall dramatically since summer 2014, with Brent, the global benchmark, down nearly 68 percent from its peak of $114.81 a barrel to a closing price of $37.06 Thursday.
“[Falling diesel prices] has to challenge demand and pricing power for domestic intermodal, especially in shorter lengths of haul,” Avondale said in a statement.
Intermodal rates continue 10-month decline
