Following strong readings over the previous two months, the new edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, retreated while remaining on the right side of growth.
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 reading came in at 3.3, marking a 3% decline December’s 6.4 reading and also below November’s 6.3. October had topped September's 4.3 by 2%, with FTR saying at the time reflected the most favorable market conditions for shippers since June 2023.
FTR said the January SCI marked the lowest reading since September, adding that the most significant changes from December conditions were less favorable freight rates and a slowdown in fuel cost decreases. It also observed that one factor related to rates was the brief spike in trucking spot rates due to winter weather in the middle of the month. Looking ahead, FTR expects the SCI to move closer to neutral market conditions, which are represented in the index by a reading of 0.
“Until recently, market conditions for shippers were reliably favorable except at times when diesel prices soared in relatively short periods,” said Avery Vise, FTR’s vice president of trucking, in a statement. “Core freight market dynamics—freight rates, utilization, and volume—have been consistent positives for shippers. That situation is changing, albeit gradually. We expect more muted conditions through 2024, and shippers should anticipate modestly more challenging market conditions by early 2025.”