Weekly discussion and analysis on the trends in the intermodal and truckload spot market.
Comments on the Weekly Intermodal Rate Charts:
Domestic intermodal spot rates are:
Down 4.9% from last week.
Down 5.3% from 90 days ago.
Up 16.3% from prior year.
Domestic intermodal spot rate index backed off the prior four week rise. 64.0% of the 120 rates tracked experienced a decrease, while 27.2% increased. Portland outbound lanes had the largest percentage decrease.
In contrast to last year's consistency, the spot rates have been relatively volatile as the market is trying to establish "new normal" pricing levels. Our expectation is spot rates will settle in around a 10% increase over the prior year.
Diesel Fuel Comments:
The EIA reported average diesel fuel price of $3.086 per gallon this week, which is a $0.016 increase from the prior week.
The price per gallon is up $0.528 or 20.6% higher from the same period last year.
Oil decreased this week with WTI and Brent closing the week at $58.91 and $62.51, respectively. These benchmarks posted their biggest weekly drop in 2 years because of rising North Crude supply; US rig count had the biggest week-over-week increase over the past twelve months; US throughput continues to outpace expectations; and weakness in the stock market.
The most recent projection by the EIA for diesel and oil prices were published on November 7. In the report, diesel is projected to average $2.83 in calendar year 2018.