FTR’s Shippers Conditions Index drops to its lowest reading on record

The most recent edition of the Shippers Conditions Index (SCI) issued earlier this week by freight transportation consultancy FTR again highlighted a significant decline in February, the most recent month for which data is available.

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 came in at -23.1, down from February’s -17.9 and January’s -10.1, for its most negative reading on record, with February representing the second-lowest reading on record.

FTR said that the sharp decline was expected, mainly related to the record surge in diesel prices and tighter capacity utilization. What’s more, it added that its near-term outlook is highly negative even before factoring in a new surge in diesel prices occurring in early May.

“Fuel costs, labor costs, and ongoing congestion across the supply chain are going to keep the pressure high on shippers as we move into the summer months,” said Todd Tranausky, vice president of rail and intermodal, in a statement. “There is little relief in sight, though there is the potential for downside economic pressure to reduce demand in the second half. But that is far from certain and also not the ideal way for shippers to experience better conditions and more capacity in their supply chains.”