FTR Shippers Conditions Index shows growth

The most recent edition of the Shipping Conditions Index (SCI), which was issued by freight transportation consultancy FTR, again remained in growth mode.

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 February, the most recent month for which data is available, the SCI reading came in at 5.1, down from January’s 5.4. These readings are 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.

FTR said that the February reading reflects an environment “that is mostly favorable and stable for shippers.” And it added that slightly lower fuel costs and relatively weak freight demand offset stronger rates and utilization in the month. What’s more, the firm observed that the outlook is for market conditions to remain in a modestly favorable range for shippers through 2023—with an expected gradual deterioration in 2024.  

“A relatively stable, slightly favorable outlook for shippers is unlikely to be moved over the next few months,” said Todd Tranausky, FTR vice president of rail and intermodal, in a statement. “But shippers need to carefully watch for signs the market will change as that could occur quickly. Shippers also need to closely watch the underlying economy for signs of change that could alter the economic calculus between shippers and their transportation providers.”