FTR’s Shippers Conditions Index sees further declines
The most recent edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, remained in contraction territory.
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 June, the most recent month for which data is available, the SCI reading was -12.0, which FTR noted “[reflects] a tough environment for shippers.”
This followed May’s -11.3, April’s -11.9, and March’s record-low reading of -17.8.
The firm said that while shipper market conditions remain highly negative freight rates improved slightly during June, but it was not enough to offset tighter capacity utilization and little change in other components—volume and fuel costs—to hold off the drop in the SCI for the month. And it added that FTR’s latest freight volume outlook is slightly weaker at 6.3% growth y/y in 2021 down from the previous +6.9% projection.
“The capacity situation is expected to remain tight into 2022 and while rate increases are expected to moderate their rates of growth through the next several months, they will for the most part remain in positive territory meaning shippers’ rate relief might feel good, but it is a matter of degrees as rates will still be going up year over year,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement.
