FTR data shows market conditions remain challenging for shippers

The ongoing “tough environment” for shippers was on full display in the most recent edition of the Shippers Conditions Index (SCI) from freight transportation consultancy FTR.

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 zero being unfavorable and a “less-than-ideal environment for shippers.”

For March, the most recent month for which data is available, the SCI reading came in at -10.5, a slight improvement from the matching -11.1 readings for January and February.

FTR said that this reading reflects how conditions remain “unfavorable,” driven largely by tight capacity and increasing rates for both truckload and intermodal. But it added there may be signs of improvement following the second quarter into the second half of the year, and it also noted that via spot market data, the hard enforcement of the ELD rule has not had a major impact on market conditions.

“Economic indicators look solid, freight demand continues to rise, and FTR sees no significant slowdown through 2019 for these conditions,” said FTR Chief Intelligence Officer Jonathan Starks in a statement. “Indeed, spot market rates are setting new record highs as the peak shipping season comes into full swing.”

And FTR Senior Research Analyst Todd Tranausky added that although negative conditions persist for shippers, the latest month saw some stabilization.

“However, the combination of tight truck capacity and challenging rail service is unlikely to abate in the near term,” he said in a statement. “Shippers need to plan on coping with these difficult conditions for a sustained period.”