• Tougher sledding for intermodal

    Tighter truck capacity, however, would provide a boost, says FTR.
    July 12, 2016

    The new intermodal competitive index (ICI) crafted by research firm FTR dropped 1.2 points in May to a reading of 3.5 – the second straight decline for the index, reflecting “somewhat difficult competitive conditions” for the domestic intermodal segment.

    “May’s ICI was adversely affected by relatively weak intermodal volumes and downward rate pressure,” said Larry Gross, an FTR partner and the firm’s resident intermodal expert, in a statement.

    “However, while intermodal is not currently experiencing the robust growth to which we have been accustomed, the fundamentals still look solid,” he added. “With truck capacity expected to tighten as we move into 2017 due to the approaching federal electronic logging device (ELD) mandate and fuel prices also moving up, [that] provides some tailwind for intermodal.”

    Gross noted that any reading of the ICI below zero indicates a less-than-ideal environment for intermodal, while readings above zero are meant to communicate relatively favorable conditions. Thus the higher the reading, the more favorable the intermodal environment appears to be, he said.

    About the Author

    Fleet Owner Staff

    Our Editorial Team

    Kevin Jones, Editorial Director, Commercial Vehicle Group

    Cristina Commendatore, Executive Editor

    Scott Achelpohl, Managing Editor 

    Josh Fisher, Senior Editor

    Catharine Conway, Digital Editor

    Eric Van Egeren, Art Director

    Sign up for our free eNewsletters

    Voice Your Opinion!

    To join the conversation, and become an exclusive member of FleetOwner, create an account today!