Subscribe to our free, weekly email newsletter!


FTR’s Shippers Condition Index continues to decrease

By Jeff Berman, Group News Editor
March 25, 2013

Typically, when things are going well for carriers, it often means they are not going as well for shippers. Based on the most recent edition of the Shipper Conditions Index (SCI) from freight transportation consultancy FTR Associates that appears to be the current trend.

January’s SCI, which represents data for the most recent month available, was -7.1, which is down 2 percentage points from December. 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. May 2011’s -11.4 was the worst SCI reading of this current economic cycle.

FTR said that the SCI represents “deteriorating conditions” for shippers early in 2013, with the SCI forecast expected to continue moving down as the year moves on, approaching negative double-digits by the end of 2013.

This, said FTR, will result in increased freight rates as volumes continue their slow crawl, with capacity expected to be hindered by regulations, including motor carriers hours-of-service (HOS), which is expected to kick off in July and limit available time trucks can spend on the road with subsequent increases in rates and decreases in available capacity.

FTR Senior Consultant Larry Gross told LM that back in 2004 there was a combination of a change in HOS and a growing economy, which resulted in about two years of freight increases.

“Now, this year, we have a raft of regulatory changes, plus a growing economy, with the new HOS rules as currently constructed likely to stand,” he said. “We are setting ourselves up for a 2004 replay, but the pressure on the driver supply and capacity is going to be considerably longer than the one-shot event that occurred in 2004. So we see the prospect for a negative rate environment extending much further.”

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

The high-volume warehouse or distribution center that supports B2B, Omni-channel activities, direct-to-consumer shipments, and the Internet of Things all require a flexible and scalable supply chain in order to function at optimal capacity. The problem is that most of today's supply chains are made up of fragmented silos of information that compromise their ability to compete, be responsive to customer demands or seize new business opportunities.

As customers' demands constantly evolve, transportation and logistics (T&L) operations are being put under growing pressure to offer more efficient delivery services, while not compromising on customer service. Using findings from a research survey conducted among transport and logistics managers around the world, this report explores how a combination of mobile technology implementations for mobile workers, and process re-engineering efforts can elevate operations to the next level.

It's a fact - most best-of-breed WMS providers force you to pay every time you require a system change. Uncover five more dirty secrets many warehouse management systems providers don't want you to know. Download the white paper 5 Dirty Secrets of Warehouse Management Systems to discover these hidden truths and gain valuable information on considerations for evaluating WMS vendors.

Not Sure? The Whitepaper "Stay or Switch" Provides the Research Necessary for You to See How Well Your Provider Stacks Up!

Too many companies invest in ERP systems but do not achieve the business benefits they anticipated. Sometimes, the ERP solution never fits the way your people and processes work.

Article Topics

News · FTR Associates · HOS · trucking · SCI · All topics

Comments

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


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA