Intermodal rates rose in September as the hurricanes impacted diesel prices.
Rates increased 4 percent year-over-year, driven by the “hurricane refining crunch which has pushed diesel prices up by 12 to 14 percent in the last two months,” said Cass. September marked the twelfth consecutive month of increases, and pricing momentum appears to be accelerating.
Donald Broughton of Broughton Capital, who analyzes the data for Cass, said he expects the intermodal rate index to exceed March’s peak of 135.4 by the end of the year. Longer term, Broughton continues to foresee oil trading in the $45 to $55 per barrel range and diesel in the $2.25 to $2.75 range throughout 2017.