FTR’s Shippers Conditions Index (SCI) for September, as reported in the November Shippers Update, at -6.5 improved only slightly from the August reading of -6.8 with market conditions stalled at a level unfavorable for shippers. The slight movement in the September SCI reflects market conditions that have barely budged as tougher freight rates and higher fuel costs offset an easing utilization. Freight volume has remained steady.
Rising fuel costs are expected to push the SCI lower in October. The outlook generally is for little improvement in shippers’ conditions over the next year.
Todd Tranausky, vice president of rail and intermodal at FTR, commented, “The next few months will see little positive change for shippers as capacity remains tight and fuel prices hold near present levels. Conditions for shippers have likely settled into the present modestly negative posture through the early part of next year.”
The November issue of FTR’s Shippers Update, published November 5th provides a detailed analysis of the factors affecting the September Shippers Conditions Index and provides the forecast for this index through September of 2022. The November issue also discusses whether the surging cost of diesel might have broader consequences for the freight market.
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.
