Stable fuel costs improve market conditions and propel FTR’s Shippers Conditions Index into positive territory

FTR’s Shippers Conditions Index (SCI) moved into positive territory in September to a reading of 0.35 from the previous -2.7 in August. The slowing of the recent surge in diesel prices helped shippers as market conditions otherwise were mostly stable.

Todd Tranausky, vice president of rail and intermodal at FTR, commented, “The neutral reading just above zero shows a relatively stable result, but it moves the index back into positive territory on an easing of diesel prices. Otherwise, the market is little changed. Moving forward, it is likely that diesel prices will determine what the change in the index will be for the next few months.”

The November issue of FTR’s Shippers Update, published November 7 provides a detailed analysis of the factors affecting the September Shippers Conditions Index and provides the forecast for this index through September of 2024. The November edition includes additional commentary analyzing the significant Q3 Gross Domestic Product growth – the strongest in nearly two years – and what it might signify for the freight market going forward.

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.