FTR reports a solid Shippers Conditions Index in most recent edition

Freight transportation consultancy FTR reported this week that the most recent edition of its Shippers Conditions Index (SCI) remained in positive territory.

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 October, the most recent month for which data is available, the SCI matched September, with a reading at 6.4.

FTR said this reading reflected a reasonably favorable climate, with all SCI inputs, save for a slight decrease in fuel, positive. But is added that the global reduction in the sulfur content of marine fuel, through the IMO 2020 initiative, could impact fuel costs in the future. Looking ahead, FTR said it expects the SCI to shift slightly lower, but remain positive in early 2020, when carriers’ capacity utilization firms up.  

“The start of the new decade will dawn with shippers still in a positive position to get their freight moved,” said Todd Tranausky, FTR vice president of intermodal and rail in a statement. “But this position is forecast to slowly erode over the next few months as capacity utilization starts to firm and shippers start to mitigate the effects of that change.”