The most recent edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, showed a very slight improvement, while still remaining 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 September, the most recent month for which data is available, the SCIA reading came in at -6.5, which represented a slight improvement over August’s -6.8. Even with the negative readings, these are the best performances for the SCI going back to September 2020, based on FTR data.
The firm said that market conditions remain at a level considered unfavorable for shippers, adding that the slight movement in the September SCI reflects market conditions that have barely budged as tougher freight rates and higher fuel costs offset an easing utilization. Freight volume has remained steady. What’s more, it said that rising fuel costs are expected to push the SCI lower in October, with the outlook calling for little improvement in shippers’ conditions over the next year.
“The next few months will see little positive change for shippers as capacity remains tight and fuel prices hold near present levels,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement. “Conditions for shippers have likely settled into the present modestly negative posture through the early part of next year.”