Intermodal rates stem 21-month decline in October

Intermodal pricing increased 0.4 percent for the month compared with the same 2015 period, the first year-over-year increase since December 2014, according to the latest Cass Intermodal Price Index.    Intermodal rates ticked up 0.4 percent in October 2016 compared to the same month last year, the first year-over-year increase since December 2014, 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 the modest October increase.
   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.
   Intermodal rates fell 0.7 percent from the previous year in September, 2 percent in August, and 2.4 percent in July.
   Investment firm Avondale Partners noted the uptick does not yet constitute a trend, warning that the data is influenced by the price of fuel, which was relatively flat year-over-year in October. Avondale Partners reiterated its expectations for further declines in intermodal rates for the remainder of 2016.
   “We expect intermodal rates will continue to remain subdued in 2016 as the drop in diesel prices and even more dramatic drop in oil continues to take its toll on U.S. domestic demand,” said Avondale.