Intermodal rates continue steady decline in August

Year-over-year rates have fallen for the eight consecutive months in response to increased demand in the truckload sector, according to the latest Cass Intermodal Price Index.    Intermodal rates fell 1.9 percent in August 2015 compared to August 2014, according to the latest Cass Intermodal Price Index.
   Cass Information Systems Inc., a transportation intelligence analyst, said year-over-year rates were down for the eighth consecutive month. Intermodal rates dropped 2.9 percent in July, 2.8 percent in June, and 3.1 percent in May compared with the previous year.
   “The drop in diesel prices has challenged demand for intermodal (many loads—mostly shorter haul—shifted to truckload) and is a strong contributor to this trend,” Cass said in a statement.
   “Domestic container shipments may grow at a low single digit rate in 2015, but that is dependent upon demand in longer lengths of haul growing fast enough to offset the loss of volume in shorter lengths of haul, particularly in the East,” it added.