FTR’s Shippers Conditions Index continued to improve in December to a -6.9 reading

FTR’s Shippers Conditions Index (SCI) for December improved from the November -9.0 reading to -6.9 primarily due to a drop in fuel prices during the month.  Even though lower fuel costs helped shippers in December, they will be a significant near-term negative as diesel prices surged in January.  Fuel costs aside, the outlook is for a very gradual improvement in the Shippers Conditions Index.

Todd Tranausky, vice president of rail and intermodal at FTR, commented, “There is a heightened amount of uncertainty once again in the Shippers Conditions Index. The improvement in fuel prices that powered an improvement in December will not carry over into the new year and may in fact turn into a negative factor in the coming months. Tensions in Eastern Europe threaten to elevate and sustain fuel prices at high levels and add volatility to global supply chains. Each of these factors could pressure the index significantly in the months ahead.”

The February issue of FTR’s Shippers Update, published February 7 provides a detailed analysis of the factors affecting the December Shippers Conditions Index and provides the forecast for this index through December of 2022. The February issue also includes an analysis of U.S. employment and what it means for the transportation industry. 

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.