FTR Shippers Conditions Index heads up but remains in negative territory

The most recent edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, posted its best reading going back to the fourth quarter of 2020, even though it was still in contraction territory.

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.”

For July, the most recent month for which data is available, the SCI reading came in at -8.07, marking an improvement over June’s -12.0, as well as May’s -11.3, April’s -11.9, and March’s record-low reading of -17.8.

FTR said that while the SCI reading remained in the red, as shipper conditions were less negative, adding that the only technically positive index factor in the month was an insignificant softening of freight volume, with the real improvement coming from less negative readings for freight rate and capacity utilization components of the index.  And it observed that the current forecast for the SCI is for it to improve into low negative territory heading into 2022.  

“The Shippers Conditions Index improved slightly in July, but that improvement came off a low base,” said FTR Vice President of Rail and Intermodal Todd Tranausky in a statement. “Conditions are still tough for shippers and will likely remain difficult for some time to come. Strong capacity utilization will support higher rates even as service suffers over the next several months.”