FTR Shippers Conditions Index shows improvement but remains negative

Coming off of a record low in March, the Shippers Conditions Index, which was recently issued by freight transportation consultancy FTR, rebounded somewhat while still remaining in the red.

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 being unfavorable and a “less-than-ideal environment for shippers.”

For April, the most recent month for which data is available, the SCI came in at -11.9, following March’s record-low reading of -17.8.

The firm cited lower fuel costs and weaker freight volume as the drivers for the improvement, which offset tough utilization and rates, as it observed that shipper conditions are expected to improve, while remaining negative, as 2021 turns into 2022.

“Shippers conditions improved in April, but are likely to remain decently negative through the balance of the year as utilization, rates, and overall transportation capacity remain tight,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement. “While April reflected some improvement, it is important to put that gain in the context of March’s record negative result. So while things improved in April, they did so from an incredibly weak level, meaning conditions remain highly challenged for shippers in the marketplace across all modes.”