FTR Shippers Conditions Index increases after two months of declines

The most recent edition of the Shipping Conditions Index, which was issued this week by freight transportation consultancy FTR, turned positive, following two months of negative readings.

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 November, the most recent month for which data is available, the SCI reading was 3.0, up from -3.1 and -0.3 readings in September and October, respectively.

FTR attributed November’s gain to the pairing of a more favorable freight environment and lower fuel costs, adding that the fuel cost component remained slightly negative while improving sharply on a sequential basis, coupled with freight rates at the most favorable level, for shippers, going back to June 2020. What’s more, the firm said that the outlook for shippers is “solidly positive” into 2024.

“The outlook has improved overall for shippers, but it will depend on exactly what mode and lane they operate in, as to how much improvement they will feel in their business,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement. “Truck-focused shippers are likely to experience the largest improvements relative to rail and intermodal shippers.”