FTR’s Shippers Conditions Index grows for sixth straight month

The most recent edition of the Shippers Conditions Index (SCI) from freight transportation consultancy FTR remained in positive territory for the sixth consecutive month.

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 zero being unfavorable and a “less-than-ideal environment for shippers.”

For March, the most recent month for which data is available, the SCI came in at 2.8, which topped February’s 0.6, as well as January’s 1.4 and December’s 1.8. This reading is now the highest reading in more than two tears, going back to August 2016.  

FTR said that March’s reading reflects a continued easing of truckload and intermodal rates, adding that the outlook is for improved conditions through 2019. But it said it comes with the caveat that certain areas like fuel price increases and trucking capacity utilization need to be watched, as they can result in additional costs for shippers.

“Shippers are benefiting from relatively stable fuel prices and weaker trucking capacity utilization than they experienced in 2018,” said Todd Traunasky, FTR vice president of rail and intermodal, in a statement. “But both of those metrics are expected to tighten up as the year progresses. Diesel prices could move up in the fourth quarter ahead of the IMO 2020 fuel mandate, which could pressure fuel surcharges higher late in 2019.”