Intermodal pricing increased 1.5 percent for the month compared with the same 2015 period, just the third year-over-year increase since December 2014, according to the latest Cass Intermodal Price Index.
Intermodal rates rose1.5 percent in December 2016 compared to the same month last year, just the third year-over-year increase since December 2014, according to the latest Cass Intermodal Price Index, which measures all-in per-mile costs.
Rates had fallen for the previous 21 consecutive months leading up to modest 0.4 percent and 0.3 percent increases in October and November, respectively.
The continued negative growth in rates was a record for the index, which was created in 2005. The previous record decline was set in the 13 months from December 2008 through December 2009.
Intermodal rates fell 0.7 percent from the previous year in September, 2 percent in August, and 2.4 percent in July.
Despite the recent uptick in pricing, and a recovery in diesel fuel prices from early 2016 lows, “we do not expect a significant amount of sequential strength from intermodal,” analysts from investment firm Avondale Partners said.
“But the current level of demand and pricing will produce a positive YoY comparison for the next 9 to 10 months,” they added.
Intermodal rates rise for third straight month in December
