FTR Shippers Conditions Index returns to growth

The new edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, shifted into growth, after several months of declines, according to the new edition of the Shippers Conditions Index.

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 August, the most recent month for which data is available, the SCI came in at 1.3, following a -2.0 reading in July. Which was preceded by June’s -2.6 reading, with May, April, and March at -0.9, -0.6, and -0.1, respectively. That was preceded by -0.3 February reading. The January SCI was 0.6 and was preceded by October’s 1.3 reading, that fell from September’s 4.6 reading. The August SCI was 2.9, with July at 0.5; June at 0.3; May at 4.5, and June at 3.0—which was preceded by several months of declines.

FTR cited stable fuel prices and softer freight rates as the primary factors in what it called the most favorable market conditions for shippers going back to last fall. And it added that aside from fuel price-related volatility, it expects SCI readings in the coming months to be consistently weaker than the August reading, citing modestly tighter capacity and firmer freight rates.

“As we suggested last month, the crackdown on truck drivers with inadequate English skills and on foreign nationals holding non-domiciled commercial driver’s licenses will tighten freight capacity to some degree,” said Avery Vise, FTR’s vice president of trucking. “However, lots of questions remain over the scope of that impact, and we are adjusting our assumptions only slightly until we see signs of a market impact. For now, we do not see a major shift in the market, but stronger freight demand could trigger a change.”