FTR’s Shippers Conditions Index is down for third straight month

Freight transportation consultancy FTR reported today that the most recent edition of its Shippers Conditions Index (SCI) saw another decline.

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 January, the most recent month for which data is available, the SCI came in at 3.7, down nearly a full percentage point from December’s 4.6, which was off 2.4% compared to November’s 7.0 reading. This marks the third consecutive month of declines, with January representing the lowest SCI reading going back to October 2018.

FTR said that the decline in freight volume was the main reason for January’s SCI output, adding that capacity utilization and logistics contributions were “weaker” in January. And the firm also noted that it views the outlook for the SCI uncertain due to COVID-19 impact on supply chain and financial markets, coupled with negative news continuing to roll out. FTR also said it is closely watching the situation to adjust forecasts as appropriate.

“The rapidly changing dynamics of the coronavirus’ effects on supply chain chains make shipper conditions highly volatile,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement. “A significant weakening of the underlying economy will challenge shipper volumes over the next few months even as capacity becomes more abundant.”