FTR’s Shippers Conditions Index takes a step back

Following its previous edition, which saw modest improvement, the new edition of the Shippers Conditions Index (SCI) from freight transportation consultancy FTR took a step back, falling to its lowest level over the course of the COVID-19 pandemic.

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.”

The February SCI, which is the most recent month for which data is available, came in at -11.8, below January’s -9.8. January’s reading marked an improvement over December’s -10.9. FTR said that the fourth quarter of 2020 presented the most difficult market conditions for shippers going back to early 2018.

FTR said that shipping conditions weakened in February and were severely impacted by tight capacity and high rates. And it added that the expected stabilization in fuel costs could help to mitigate the pain, to a degree, as the SCI measure forecast is expected to head up to a more modest negative range this summer.  nbsp;

“Widespread weather-related disruptions in February weakened the conditions in the marketplace for shippers as capacity tightened and rates increased,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement. “Going forward, catch up freight volumes from disrupted businesses are likely to keep capacity tight in the coming weeks and months. As things normalize, the market will improve slightly as time goes on.”