Intermodal rates continue to rise, but at a slower pace

May 2017 marked the eighth consecutive month of rising intermodal freight rates, but at roughly half the pace compared with the beginning of the year, according to data from the latest Cass Intermodal Freight Index report.    Intermodal pricing in May 2017 continued to expand, but the pace of growth slowed, according to the latest Cass Intermodal Price Index report.
   Rates increased 2.2 percent year-over-year to 129.3 in another consecutive month of expansion, but the data suggests momentum is slowing, Cass said.
   The 3-5 percent growth seen earlier this year has dropped steadily, but Donald Broughton with Broughton Capital, who analyzes the data for Cass, said he expects intermodal rates to continue to show better strength in 2017 than was achieved in 2016.
   Now that diesel fuel pricing has recovered, the current level of demand and pricing will produce a positive year-over-year comparison for the next six to nine months, said Broughton.