FTR Shippers Conditions Index drops to lowest level on record

After taking a step back in its previous edition, the new Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR dropped to its lowest reading on record.

FTR describes the SCI as an indicator that sums up all market influences that affect the transport environment for shippers, with a reading above zero being favorable and a reading below being unfavorable and a “less-than-ideal environment for shippers.”

The March SCI, which is the most recent month for which data is available, came in at -17.8, six points below February’s -11.8 and also preceded by January’s -9.8 and December’s -10.9.

Despite this run of declines, FTR said it expects SCI readings to see improvements in the coming months while remaining negative into 2022.

“While May and June are expected to be the worst months for shippers as rate increases in truck and rail hit their peak for the year, it is possible that the tight conditions could persist for longer,” said Todd Tranausky, FTR vice president of rail and intermodal, in a statement. “Capacity is expected to remain a constraining factor for transportation through the end of 2021 as truck and rail each struggle to regain employees lost during the pandemic. Strong consumer and industrial demand means freight volumes will remain strong at the same time, setting up a challenged market for shippers over the next few months.”