Intermodal pricing increased 4.8 percent for the month compared with the same 2016 period, just the six year-over-year increase since December 2014 and the second largest since January 2012, according to the latest Cass Intermodal Price Index.
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Intermodal rates in March 2017 rose 4.8 percent compared with the previous year, according to the latest Cass Intermodal Price Index.
Intermodal rates grew for the sixth straight month in March 2017, rising 4.8 percent compared to the same month last year, according to the latest Cass Intermodal Price Index, which measures all-in per-mile costs.
Cass noted March growth was just the sixth year-over-year increase since December 2014 and the second largest since January 2012.
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, a 3.8 percent bump in January 2017 and a 4.9 percent increase in February.
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.
“We expect intermodal rates to show better strength in 2017 than were achieved in 2016,” the logistics payment solutions provider said. “As the price of diesel fuel has recovered from oversold lows and established a price more consistent with the marginal cost of production from domestic fracked sources, we foresee oil trading in the $45 to $55 range and diesel in the $2.25 to $2.75 range throughout 2017.
“Simply put, the current level of demand and pricing will produce a positive year-over-year comparison for the next 9 to 10 months.”