FTR’s newly introduced Intermodal Competitive Index (ICI) dropped 1.2 points in May to a reading of 3.5. This was the second straight decline, and it sits at the lowest level seen since last September.The May reading shows the domestic intermodal sector is still experiencing somewhat difficult competitive conditions, but that the overall situation remains mildly favorable from an intermodal standpoint.
Larry Gross, partner at FTR and principal author of Intermodal Update, said, “May’s ICI was adversely affected by relatively weak intermodal volumes and downward rate pressure. However, while intermodal is not currently experiencing the robust growth to which we have been accustomed, the fundamentals still look solid, with truck capacity expected to tighten as we move into 2017 due to the approaching the federal electronic logging device mandate. Fuel prices are also moving up, which provides some tailwind for intermodal.”
The Intermodal Competitive Index is a compilation of factors affecting the competitive posture of the domestic North American intermodal sector versus over-the-road truck. Any reading below zero indicates a less-than-ideal environment for intermodal, while readings above zero are meant to communicate relatively favorable conditions.
The higher the reading, the more favorable the intermodal environment appears to be. The ICI looks at a variety of factors including truck capacity, fuel prices, rail service, intermodal rates, and so forth. Details of the factors affecting the May Intermodal Competitive Index — along with a close look at market conditions and what might be expected going forward — are found in the July issue of FTR’s Intermodal Update published earlier this month.
http://www.truckingnewsonline.com
No comments:
Post a Comment