Intermodal rates see fastest growth in five years

Intermodal pricing in February 2017 increased 4.9 percent compared with the same 2016 period, just the fifth year-over-year increase since December 2014 and the largest since January 2012, according to the latest Cass Intermodal Price Index.    Intermodal rates rose 4.9 percent in February 2017 compared to the same month last year, just the fifth year-over-year increase since December 2014 and the largest since January 2012, 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, a 1.5 percent uptick in December, and a 3.8 percent bump in January 2017.
   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.
   Given the recovery in diesel fuel prices from early 2016 lows, analysts from investment firm Avondale Partners said they are projecting stronger intermodal pricing this year.
   “The current level of demand and pricing will produce a positive YoY comparison for the next 9 to 10 months,” the firm said.