Comments on the Weekly Intermodal Rate Charts:
Domestic intermodal spot rates are:
- Up 3.0% from last week.
- Up 6.1% from 90 days ago.
- Up 11.9% from prior year.
While intermodal volumes are increasing, capacity continues to remain fairly well balanced across the network making for a value pricing and at a high level of service.
Earlier in the month, the all-in spot rate charts were indicating relatively flat rates over the course of July. The increase in oil, along with the increase in demand has pushed the intermodal spot rates higher, which is opposite the downward trend over the course of July the DAT Trendlines illustrated. Both truck and intermodal rates tend to move in unison, so it will be interesting what plays out over August.
Diesel Fuel Comments:
The EIA reported average diesel fuel price of $2.531 per gallon this week, which is a $0.024 increase from the prior week. The price per gallon is up $0.183 or 7.2% higher from the same period last year.
Oil prices have continued their climb up from last week. WTI and Brent crude are trading in the range of $49.50 and $52.50 a barrel this week, respectively. The story continues to be around supply outpacing demand. OPEC is holding onto production cuts with hopes to help drive WTI up to and above $50, but US drillers continue to pump more into the market than demand dictates when approaching $50, which has resulted in WTI being price bound between $45 and $50 a barrel. The weekly Baker Hughes rig count chart helps to illustrate the point. All-in, oil is a battle ground topic that appears to not be lessening any time soon.
The full spreadsheet of the historical weekly price moves of diesel full can be found at https://www.eia.gov/petroleum/gasdiesel/.
Graphs listed below include:
- 53' Domestic Intermodal Price Index & Diesel Fuel Prices
- Price Changes in 53' Domestic Intermodal Pricing & Diesel - 1/1/2013 Baseline
- Rolling Quarter-over-Quarter Comparison - 53' Domestic Intermodal and Diesel Fuel Prices
- Rolling 52 Year-over-Year Comparison - 53' Domestic Intermodal and Diesel Fuel Prices
- Rolling 52 Year-over-Year % Change - 53' Domestic Intermodal and Diesel Fuel Prices
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