Shippers Conditions Index

FTR’s Shippers Conditions Index for May Shows Barely Any Improvement in Market Conditions

FTR's Shippers Conditions Index for May was -15.4, a slight improvement from April’s -17.4, but still among the six least favorable readings since 2000. While market conditions for shippers in May were technically less severe than in March and April, it was a small consolation, as conditions remained extremely challenging, largely due to freight rates.

The July FTR’s Shippers Update includes a discussion on how increased regulatory enforcement pressure could affect the market in the coming months.

Avery Vise, FTR’s vice president of trucking, commented, “As we have indicated for several months, there is little in the way of good news for shippers. The SCI estimate for June is preliminary, but the one relative positive seemed to have been falling fuel costs. However, that factor very recently has stopped improving and could be reversing.

“The lone near-neutral contributor to the SCI recently has been – and is expected to be – lack of freight volume pressure on the transportation system, but that experience varies by type of equipment needed. While we expect market conditions to become less daunting for shippers in the months ahead, we expect the SCI to be consistently negative throughout the two-year forecast horizon. Even worse, most risks to that forecast probably are to the downside for shippers.”

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This index represents four major conditions in the U.S. full-load freight market. These metrics are combined into a single index that tracks the market conditions that influence a shipper's freight transportation environment.

Don't miss next month's release of the Shipper's Conditions Index.

FTR’s Shippers Conditions Index for May Shows Barely Any Improvement in Market Conditions