FTR’s Shippers Conditions Index (SCI) continued to fall in August to its first negative reading since October 2022 at -2.7. Freight rates were not quite as positive as they had been during the month with the real market challenge for shippers being the recent surge in diesel prices.

Todd Tranausky, vice president of rail and intermodal at FTR, commented, “The decline was almost entirely the result of higher diesel prices as overall capacity remains abundant across modes. But diesel prices pushed up rates and fuel surcharges leading to a less favorable environment for shippers. It is possible that diesel prices stay elevated for an extended period of time.”

The October issue of FTR’s Shippers Update, published October 6 provides a detailed analysis of the factors affecting the August Shippers Conditions Index and provides the forecast for this index through August of 2024. The October edition includes additional commentary examining the financial situation facing the large number of small carriers currently operating.

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.