SCI

Reasons cited by FTR for the difficult market shippers are dealing with included rising regulatory pressures, coupled with the capacity required for a “hot” freight market slow to increase in the first quarter, which subsequently added pressure on rates.

For January, the most recent month for which data is available, the SCI (Shippers Conditions Index) reading was -11.1, which is down from December’s -8.8 and November’s -8.9. FTR said the January reading points to the ongoing challenges shippers are up against, with the firm expecting what it expects to be a tough 2018 for both capacity and rates. And it added that rates are expected to expand annually in the second quarter prior to a modest decline over...

For August, the most recent month for which data is available, the SCI fell to -6.7, a sharp decline from July’s -0.1 and June’s -0.7.

For July, the most recent month for which data is available, the SCI reading was -0.1, which was in range and slightly below June’s -0.7 reading. The firm said these levels reflect “the dominance” of contract pricing, coupled with capacity continuing to significantly tighten and subsequently increasing spot market activity, especially in the form of increasing spot market rates.

Recent data from FTR and the American Trucking Associations provide in-depth insight on motor carrier and shipper market outlooks.

FTR described the May reading as “benign” and a reflection of only moderately favorable truck freight growth and ongoing weak contract pricing.

For April, the most recent month for which data is available, the SCI was -3.6, which FTR called a modest deterioration and leaves it in a soft negative range of tightening capacity utilization that reflects the ability of shippers to fend off pricing increases from their contract carriers.

FTR explained that softer freight conditions and a view of adequate capacity over the past eighteen months have slowed the expected decline in the SCI, adding that any market-wide tightness reflected in recent tightening of spot rates is currently less than originally thought.

For February, the most recent month for which data is available, the SCI was -2.8, which represented an improvement over January’s -3.6 but not as close to positive readings recorded in November and December at -0.6 and 1.9, respectively.

The most recent edition of the Shippers Conditions Index (SCI) from freight transportation consultancy FTR issued this week points to a “more challenging environment” for shippers in early 2017.

FTR said that it is likely that the current market environment for shippers will lead to what it said would be rate and supply trouble this year, due to a steady increase in capacity utilization, which it expects to occur through 2017 and come to a head in early 2018.

For November, the most recent month for which data is available, the SCI came in at 1.4, which was ahead of October’s 0.4 and September’s -2.4. While improving, FTR made it clear that these low SCI levels signal what it called steadily deteriorating conditions throughout 2017 for shippers.

The October SCI was 0.4, which is ahead of September’s -2.4, which FTR described as a “pause” before an expected 2017 decline, brought about by a meshing of pending regulations and expected increases in freight rates and economic improvement.

The September SCI fell 3 points in September to -2.4, coming off of low positive growth in August.

The April SCI hit 1.5, which was up from March’s 0.4, which FTR described as reflecting improved market conditions for shippers at a time when freight demand remains sluggish while reaching its highest level since 2011.