FTR’s Shippers Conditions Index for August improved into positive territory

FTR Shippers Conditions Index for August improved to 1.3 in August from -2.0 in July. Stable fuel prices and softer freight rates were the biggest factors in the most favorable market conditions for shippers since last fall.

Aside from volatility related to fuel price swings, FTR anticipates SCI readings consistently weaker than August’s level over the forecast horizon due to modestly tighter capacity and firmer freight rates.

Avery Vise, FTR’s vice president of trucking, commented, “As we suggested last month, the crackdown on truck drivers with inadequate English skills and on foreign nationals holding non-domiciled commercial driver’s licenses will tighten freight capacity to some degree. However, lots of questions remain over the scope of that impact, and we are adjusting our assumptions only slightly until we see signs of a market impact. For now, we do not see a major shift in the market, but stronger freight demand could trigger a change.”

The October FTR’s Shippers Update, published October 7, included commentary on data suggesting that driver capacity is tighter than previously indicated and on emerging factors – especially pressure on foreign drivers – that could lead to further tightening. To learn more about our Shippers Update subscription service go to www.ftrintel.com/shippers-update.

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.