Subscribe to our free, weekly email newsletter!


FTR Shippers Condition Index remains mostly unchanged

By Jeff Berman, Group News Editor
May 15, 2012

Business conditions impacting shippers remain largely unchanged, according to the most recent edition of the Shippers Condition Index (SCI) from freight transportation forecasting firm FTR Associates.

The SCI showed a 0.3 percent improvement to -5.3 in March (the month for which most recent data is available) from -5.6 in February.

A reading above 0 suggests a favorable shipping environment, and FTR describes the SCI as an indicator that sums up all market influences that affect shippers, with a reading above zero being favorable and a reading below zero being unfavorable. The SCI in January, December, and November was -4.8, -4.8, and 6.1. May 2011’s -11.4 was the worst SCI reading of this current economic cycle.

FTR officials said that the current SCI reading is indicative of a moderately unfavorable condition that is expected to persist until the onset of the busy fall shipping season at which point capacity will tighten up even further. They added that by later this year and into 2013, the situation may get worse for shippers, as their options for available capacity become even more limited while rates increase when truck driver hours-of-service regulations are expected to go into effect by mid-2013.

“The forces that are in motion now are slow but very powerful,” said FTR Senior Consultant Larry Gross in an interview. “Unless the economy turns solid in a big way, things are going to get tougher for shippers, especially as new regulations take hold. From a shippers’ standpoint, rates will go up, and capacity will get harder to find.”

This was made clear at the recent NASSTRAC Logistics Conference and Expo, when various carriers told LM that rate hikes, especially on the trucking side, will be coming to help off-set their increased expenses being brought on my steep equipment costs, labor, and regulations, among other factors.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Supply chain security provider Freightwatch International has released its semi-annual report on cargo theft in the Asia Pacific region for the first half of 2014, which contains some heartening news for U.S. shippers reliant on trucking, warehousing and retail.

FedEx Ground, a subsidiary of FedEx Corporation, reports today that a decision by a three-judge panel of the United States Court of Appeals for the Ninth Circuit reversed previous rulings by the District Court for the Northern District of Indiana in three class action cases involving mostly former independent contractors for FedEx Ground

More talking remains before the deal is done

The transpacific U.S.-flag carrier has been ranked number one in the ocean carrier category for Logistics Management magazine's Quest for Quality award

This year, the Containerization & Intermodal Institute (CII) will be staging the “Connie” Awards dinner in conjunction with IANA’s Intermodal EXPO in Long Beach

Article Topics

News · FTR Associates · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA