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US intermodal rates up 1.5pc for third straight month in December
INTERMODAL rates in the US rose 1.5 per cent in December 2016 compared to the same month last year, just the third year-on-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 modest 0.4 per cent and 0.3 per cent increases in October and November, respectively.
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 per cent from the previous year in September, two per cent in August, and 2.4 per cent in July, according to American Shipper.
Despite the recent uptick in pricing, and a recovery in diesel fuel prices from early 2016 lows, "we do not expect a significant amount of sequential strength from intermodal," analysts from investment firm Avondale Partners said.
"But the current level of demand and pricing will produce a positive year-on-year comparison for the next nine to 10 months," they added.
Rates had fallen for the previous 21 consecutive months leading up to modest 0.4 per cent and 0.3 per cent increases in October and November, respectively.
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 per cent from the previous year in September, two per cent in August, and 2.4 per cent in July, according to American Shipper.
Despite the recent uptick in pricing, and a recovery in diesel fuel prices from early 2016 lows, "we do not expect a significant amount of sequential strength from intermodal," analysts from investment firm Avondale Partners said.
"But the current level of demand and pricing will produce a positive year-on-year comparison for the next nine to 10 months," they added.
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