Shippers remain stuck with challenging market conditions, say FTR

Factors like tight over the road capacity and rate pressures continue to make things difficult for shippers, according to the most recent edition of the Shippers Conditions Index (SCI), which was recently released by freight transportation consultancy FTR.

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 May, the most recent month for which data is available, the SCI came in at -12.3, which is a marginal improvement over April’s -13.4, which FTR said represents an all-time low, and represents “all-time low reflecting the worse conditions for shippers ever measured by FTR.”

FTR added that while conditions continue to be tough for shippers, the environment for them could slowly stabilize through the year.  And it added that the overall conditions for shippers are still expected to remain negative through 2019.  Economic indicators generally suggest continued strength in freight volume, keeping capacity tight and rates up, it said.

“Shippers are in an extended period of difficult conditions because of a tight truck market and sub-par rail service,” said Todd Tranausky, FTR senior transportation analyst, in a statement. “While conditions are expected to stabilize, there is unlikely to be a significant improvement for shippers before the end of the year.”