FTR’s Shippers Conditions Index steps firmly into positive territory

The most recent edition of the Shippers Conditions Index (SCI), which was issued this week by freight transportation consultancy FTR came in at its highest level in more than two years. 

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 December, the most recent month for which data is available, the SCI reading of 1.7 is at its highest level since August 2016. This follows November’s barely positive reading of 0.1, and October’s -2.1, which, while negative, marked an improvement September’s -7.6, as well as the 8.8 reading recorded in August. The July SCI reading was -9.9 and June was -9.5. May’s SCI was -12.3 and April’s was -13.4.

FTR said that after what it called a “shorty weakening period” for the first quarter of this year, the SCI is expected to remain at levels comparable to the Decembereading throughout 2019. And it added that positive readings for both the SCI and FTR’s other monthly report, the Trucking Conditions Index (TCI), which reflects tightening conditions for hauling capacity and is comprised of various metrics, including capacity, fuel, bankruptcies, cost of capital and freight, were both positive in December, due to improved freight volume and lower fuel rates, coupled with not much in the way of freight rate fluctuation.

“Stable fuel prices, a turn in rail service levels, and loosening truck capacity have combined to create a favorable environment for shippers seeking to move freight,” said Todd Tranausky, FTR vice president of rail and intermodal, in a statement. “The situation is forecast to continue for much of 2019, as fuel prices remain stable and economic conditions hold firm.”