FTR Shippers Conditions Index shows little M/M change in February

FTR’s Shippers Conditions Index (SCI) in February, with a small decline to 5.1 from 5.4 in January, reflects an environment that is mostly favorable and stable for shippers.

Slightly lower fuel costs and relatively weak freight demand offset stronger rates and utilization in the month. The outlook is for market conditions to remain in a modestly favorable range for shippers through 2023 with expected gradual deterioration in 2024.

Todd Tranausky, vice president of rail and intermodal at FTR, commented, “A relatively stable, slightly favorable outlook for shippers is unlikely to be moved over the next few months. But shippers need to carefully watch for signs the market will change as that could occur quickly. Shippers also need to closely watch the underlying economy for signs of change that could alter the economic calculus between shippers and their transportation providers.”

The April issue of FTR’s Shippers Update, published April 6 provides a detailed analysis of the factors affecting the February Shippers Conditions Index and provides the forecast for this index through February of 2023. The April issue also includes commentary detailing the annual revision of industrial production and manufacturing data.

The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are: freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance.