FTR’s Shippers Conditions Index drops in May to -6.2 reading

FTR’s Shippers Conditions Index (SCI) fell back in May to a -6.2 reading. After relatively stable diesel prices in April, large increases in May coupled with tighter capacity utilization led to tougher market conditions despite some rate relief. 

The outlook for the SCI is for little change as utilization and rates are expected to remain mildly unfavorable for shippers. Occasional positive readings are possible depending on changes in fuel costs and market dynamics. 

Todd Tranausky, vice president of rail and intermodal at FTR, commented, “There is a lot of uncertainty in the weeks and months ahead as congestion remains a front burner issue for anyone moving freight through the port and rail supply chain. There is no easy solution to the congestion woes facing the ports and rail carriers, and it is unlikely to improve meaningfully before the peak season ramps up.”

The June issue of FTR’s Shippers Update, published July 8th provides a detailed analysis of the factors affecting the April Shippers Conditions Index and provides the forecast for this index through May of 2023. The July issue also includes a discussion of the dynamics currently supporting a shift of freight demand back to larger contract carriers from smaller carriers and the spot market

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.