FTR’s Shippers Conditions Index sees mild signs of improvement

FTR’s most recent edition of its Shippers Conditions Index (SCI) showed some gradual improvement, the freight transportation consultancy reported this week.

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 August, the most recent month for which data is available, the SCI was -8.8, which, while still negative, represents an improvement over July’s -9.9, which was in close range to June’s -9.5. While these readings are firmly in negative territory, they represent an improvement over May’s -12.3 and April’s -13.4.

FTR explained that these gradual gains in recent months show how shippers are seeing some relief from very tight capacity, with rate growth moderating accordingly, coupled with the expectation that the SCI could be in neutral territory range by mid-to-late 2019.

“Shippers have experienced some relief in recent weeks as trucking capacity has loosened and rail service stabilized,” said Todd Tranausky, FTR vice president of rail and intermodal, in a statement. “However, going into the peak season and the potential for some shippers to pull forward imported volumes, it will bear watching to see if service continues to improve through the end of 2018.”