FTR’s Shippers Conditions Index soars to 41.3 reading in April

FTR’s Shippers Conditions Index (SCI) for April soared to a reading of 41.3, more than double March’s 19.7 measure.  April’s reading is expected to be the peak for the SCI during this unprecedented time for transportation.   Although most shippers’ revenues suffered greatly in April, the month may never be matched in terms of freight market conditions.  May shippers’ conditions will not meet April but they could be the second-best ever.  After May, FTR forecasts more stability in the SCI but still at double-digit positive readings into 2021.

Todd Tranausky, vice president of rail and intermodal at FTR, commented “While April’s SCI rating is strong, April was not necessarily as great a time to be a shipper as the result would imply because of the effects of the COVID-19 shutdowns all across the country. While the result will come down in May as capacity gets absorbed by the restart of manufacturing facilities, it will remain a good time to be a shipper through this year and into 2021.”
The June issue of FTR’s Shippers Update, published June 6 details the factors affecting the April Shippers Conditions Index. Additional commentary updates the COVID-19 discussion and the uncertainties likely to impact the recovery.
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.