FTR Shippers Conditions Index falls but remains in growth mode

The most recent edition of the Shipping Conditions Index, which was issued by freight transportation consultancy FTR, remained in growth mode, despite a sequential decline.

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 January, the most recent month for which data is available, the SCI came in at 5.4, which was nearly half of December’s 10.3 reading. November’s 3.0 reading was preceded by -3.1 and -0.3 readings in September and October, respectively.

FTR said that December’s SCI had reflected robust market conditions for shippers which softened a bit in January as looser capacity was the only factor more favorable sequentially.  The January SCI, exclusive of the December reading, was still the strongest since May 2020. The SCI is forecast to remain stable into 2024, according to FTR.

“The Shippers Conditions Index is likely to hold firm unless overall economic conditions deteriorate significantly from present levels,” said Todd Tranausky, vice president of rail and intermodal at FTR in a statement. “Looser truckload capacity, slowing imports, and improving rail service should all support stable to improving shippers’ conditions through the balance of the year.”