FTR’s Shippers Conditions Index shows sequential gains

The most recent edition of the FTR Shippers Conditions Index (SCI), which was recently released issued by freight transportation consultancy FTR saw a decent gain, from April to May, the most recent month for which data is available.

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.”

May’s SCI reading, at 8.6, topped April’s 7.1, noted FTR. The readings over the last two months were preceded by March’s 4.5 reading, February’s 5.1 and January’s 5.4, with the January and February readings nearly half of December’s 10.3, to finish 2022. November’s 3.0 reading was preceded by -3.1 and -0.3 readings in September and October, respectively.

For May, FTR said that the environment for shippers was moderately more favorable in May due to lower fuel costs and freight rates along with slightly weaker freight volume, adding that the outlook is positive through mid-2024.

“The Shippers Conditions Index rose in May as it became more obvious that there would be abundant capacity available in the system for longer during 2023,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement. “While there are signs that capacity may be as loose as it is going to get, economic uncertainty could keep some shippers on the sidelines as they weigh their own inventory situation.”