Image being Skipped in Automated Test

Getting xxx_service uses an image, skipping problem in Automated Repository Tests.

We have both unit tests as well as integration tests in the test suites. The integration tests require a database. In the docker-compose.test.yml, we put a standard sut service, and linking to a database service. But the database service is skipped because it uses an external docker image.

Is this not a use case supported by Docker Cloud? Or are we making some mistakes somewhere?

The application is a ruby on rails web application. And showing the docker compose file and part of the build/test logs.

Simplified docker-compose.test.yml

  build: .
    DATABASE_PASSWORD: strong_password
    - database
  command: ./
  image: 'postgres:9.4'
    POSTGRES_PASSWORD: strong_password

Part of the logs.

Starting Test Starting Test in docker-compose.test.yml... 
Pulling database (postgres:9.4)... 
9.4: Pulling from library/postgres Digest: sha256:f51abce88b017a278ab7f68efd46a61d417f522231b271ede0f9d53903839271 
Status: Downloaded newer image for postgres:9.4 
database uses an image, skipping 
Building sut 
Step 1 : FROM ruby:2.3.1-alpine 
 ---> adae74697505 

(logs removed)

could not connect to server: Connection refused 
Is the server running on host "" and accepting 
TCP/IP connections on port 5432?