Intermodal rates down yet again in July

Year-over-year rates were down for the seventh consecutive month in July in response to increased demand in the truckload sector, according to the latest Cass Intermodal Price Index.    Intermodal rates fell 2.9 percent in July 2015 compared to July 2014, according to the latest Cass Intermodal Price Index.
   The transportation intelligence analyst said year-over-year rates were down for the seventh consecutive month. Intermodal rates dropped 2.8 percent in June, 3.1 percent in May, 1.9 percent in April and 1.6 percent in March compared with the previous year.
   “The decrease comes in response to falling demand for intermodal as lower diesel prices have encouraged mode shifting to truckload,” Cass Information Systems Inc. said in a statement. “The ability for shippers to do this will remain limited, however, by tight demand in the trucking sector.”
   “We have historically observed a high degree of correlation between truckload and intermodal pricing, and know that should truckload rates continue to accelerate in the coming months, intermodal rates would normally follow,” added investment firm Avondale Partners. “That said, this is only true for the base rate and the dramatic drop in fuel surcharges for truckers has to put pressure on domestic intermodal rates, especially in shorter lengths of haul.”