FTR’s Shippers Conditions Index fell into negative territory in December

FTR’s Shippers Conditions Index for December fell to -1.8, which is only the second negative reading for the measure since August 2023. The November SCI reading had been +2.3. Sharply stronger freight volume and capacity utilization in December were a hit to shippers’ market conditions for the month, although the impact on freight rates was marginal.

Avery Vise, FTR’s vice president of trucking, commented, “Market conditions for shippers likely will be volatile in the near term as the supply chain reacts to the plethora of tariff impositions and threats as well as similar measures such as the proposed port access fee related to China. Our forecast for the SCI is slightly weaker than it was previously but generally not as weak as it was in December. Although we expect market conditions over the course of the year to be only slightly negative for shippers, that outlook probably is of little consolation for traffic managers having to navigate a chaotic business environment day to day and week to week.”

The February FTR’s Shippers Update, published February 7, includes commentary discussing the reshaping of energy policy under the new administration in Washington.

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 summarizes the industry’s health at a glance.