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FTR’s July Shippers Conditions Index Changes Little from June Remaining in Moderately Negative Territory

09.26.18 | FTR


FTR’s Shippers Conditions Index (SCI) for July at -9.9 did not move much from the previous monthly reading of -9.5.  While still in a very challenging environment, the measures used in computing the SCI indicate that the worst may be behind for shippers. Earlier in the year the SCI reading was in double digit negative territory.  FTR forecasts the index to moderate from this point forward until reaching the “least unfavorable” level on this cycle around mid-2019.  Key freight generators - manufacturing, construction, retail sales, and the inventories-to-sales ratio - remain strong with a positive outlook for the coming months.


Click here to view the latest release and an interactive graph of the SCI>


Todd Tranausky,  Vice President for rail and intermodal at FTR, commented, “Stabilization in rail service levels and some easing in the trucking market led to a steady SCI this month. But conditions have not shown any sign of improvement for shippers as they head toward peak season and a potential end-of-year rush before new tariffs take effect on January 1. While things are stable, the SCI indicates that things remain far from ideal for shippers.”


The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are: freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem...and readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment. Double digit readings (both up or down) are warning signs for significant operating changes.

The September issue of FTR’s Shippers Update, published Sept 7, 2018, details the factors affecting the May Shippers Conditions Index, along with an analysis of truck equipment additions and driver hiring at for-hire and private carriers to date in 2018.

For more information about how to subscribe to the Shippers Update, send an e-mail to hlile@ftrintel.com or call Helen Lile at (888) 988-1699 ext. 1 and follow us on Twitter @FTRintel.


The Shippers Update, launched by FTR during 2010 as a part of the firm’s Freight Focus, looks at conditions that will affect the cost and efficiency of shipping goods via all transportation modes. North American shippers will find in one reference the essential information they need on freight volumes, equipment capacity and transport costs and rates.

The Shippers Update has both history and forecasts for four modal options: truckload, less-than-truckload, intermodal and rail carload. The analysis includes the breakdown of total truck and rail volumes into major commodity segments. It also provides historical snapshots of inland water and air freight markets. The freight data is augmented by an abundant collection of supporting data covering macro-economics and the fuel market.
 
Click here to view a sample report >

About FTR
For more than two decades, FTR has been the thought leader in freight transportation forecasting in North America. The company’s national award-winning forecasters collect and analyze all data likely to impact freight movement, issuing consistently reliable reports for trucking, rail, and intermodal transportation, as well as providing demand analysis for commercial vehicle and railcar. FTR’s forecasting and specially designed reports have resulted in advanced planning and cost-savings for companies throughout the transportation sector.