FTR’s Shippers Conditions Index softens in October, falling to 1.3

FTR’s Shippers Conditions Index declined in October to 1.3 from a 4.6 reading in September. Market conditions for shippers were not as favorable due to firmer fuel costs and tighter capacity. SCI readings might stay positive in the near term, but FTR expects more neutral readings soon, reflecting a greater balance between shippers and carriers. However, significant trade policy changes under incoming President Trump could yield a more volatile freight market.

Avery Vise, FTR’s vice president of trucking, commented, “Announced tariffs on imports from Mexico and Canada and increased tariffs on Chinese goods along with other likely tariffs raise the level of uncertainty over market conditions for shippers in the near term. We expect any additional pressure on supply chains and freight transportation due to changes in trade policy to be mostly temporary, but a few hiccups seem likely. Fortunately for shippers, transportation capacity is considerably more fluid than it was during the stressful 2020-2021 period.”

The November FTR’s Shippers Update, published December 6, includes a discussion regarding the impact and uncertainty of possible new tariff activity on the supply chain and business decision making.

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.