Intermodal pricing dropped for 20th straight month compared with the prior year period, according to the latest Cass Intermodal Price Index, and analysts with Avondale Partners expect the trend to continue through the rest of the year.
Intermodal rates fell another 2 percent in August 2016 compared to the same month last year, according to the latest Cass Intermodal Price Index, which measures all-in per-mile costs.
Cass Information Systems Inc., a logistics payment solutions provider and transportation intelligence analyst, said year-over-year rates were down for the 20th consecutive month. Intermodal rates fell 2.4 percent from the previous year in July, 1.5 percent in June, and 2 percent in May.
The continued negative growth in rates is a record for the index, which was created in 2005. The previous record decline was set in the 13 months from Dec. 2008 through Dec. 2009.
Investment firm Avondale Partners reiterated its expectations for further declines in intermodal rates for the remainder of 2016 as the precipitous drop in oil prices continues to negatively impact U.S. domestic demand.
“The greater than $0.30 a mile decline in fuel surcharges collected by truckers in the last two years has to challenge demand and pricing power for domestic intermodal, especially in shorter lengths of haul,” said Avondale. “However, the current year over year decline in fuel surcharge per mile is now less than $0.04.”
Intermodal rate free fall continues in August
