FTR Shippers Conditions Index sees best reading in nearly two years
Following a month that fell to its lowest level on record, the most recent edition of the Shippers Conditions Index (SCI), for the month of April (the most recent month for which data is available), which was issued by freight transportation consultancy FTR, jumped to its best reading going back to September 2020.
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 April SCI remained negative, coming in at -1.7. following March’s all-time low of -23.1, which was down from February’s -17.9 and January’s -10.1, for its most negative reading on record, with February representing the second-lowest reading on record.
FTR said that shippers gained some relief in April, due to more stable diesel prices, as well as less challenging capacity utilization and freight rates that helped to drive improvements for the SCI reading. What’s more, the firm said that its current outlook sees mildly less favorable SCI readings through year-end, adding that it is not likely to revert back to double-digit negative readings.
“Even though the Shippers Conditions Index rebounded in April, shippers will continue to face headwinds over the balance of the year from strong fuel prices and carriers seeking to limit congestion on their routes as the peak season ramps up in the months ahead,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement.
