FTR’s Shippers Conditions Index posts solid growth

The new edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, remained in positive territory for the second 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 being unfavorable and a “less-than-ideal environment for shippers.”

For October, the most recent month for which data is available, the SCI reading came in at 4.3, topping September’s 0.35, which marked an improvement over August’s -2.7 reading, its first negative reading since October 2022. This came on the heels of a 1.6 July reading, which was well below June’s 7.9.

FTR attributed October’s improvement to reversal of the surge in diesel prices (at that time), while adding that all major factors were at least marginally more favorable in October.

“Overall market conditions for shippers in October as measured by the SCI were the most favorable since June, but swings in fuel costs largely have been the variable month to month,” said Avery Vise, FTR’s vice president of trucking, in a statement. “Key freight dynamics—rates, utilization, and volume—have been mostly stable over the past several months and look to be so for at least a few months of 2024. After the boosts from falling diesel prices in November and December 2023, we expect market conditions for shippers to soften gradually, but we do not foresee significantly negative conditions during the forecast horizon.”