Rates fell another 3.8 percent in December compared to last year, the 12th consecutive month prices have decreased, according to the latest Cass Intermodal Price Index.
Intermodal rates fell 3.8 percent in December 2015 compared to December 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 12th consecutive month. Intermodal rates dropped 2.4 percent in November, 3.2 percent in October and 2.3 percent in September compared with the previous year.
The continued decline in rates is second only to the 13 months from Dec 2008 through Dec 2009 since the index inception in 2005, said Cass.
Analysts with investment firm Avondale Partners attribute the decline primarily to the steep fall in diesel and crude oil prices throughout 2015.
Intermodal volumes are expected to grow in the low single digits this year, but “rates will continue to decline in 2016 as the dramatic drop in diesel prices and even more dramatic drop in oil takes its toll on U.S. domestic demand,” Avondale said in a statement.
Intermodal rates drop for 12th straight month
