FTR’s Shippers Conditions Index turns negative for the first time since October 2022

The new edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, continued to head in the wrong direction.

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 August, the most recent month for which data is available, the SCI reading, at -2.7, registered a negative reading for the first time since October 2022. This came on the heels of a 1.6 July reading, which was well below June’s 7.9.

FTR said that freight rates were not quite as positive as they had been during August, noting that the real market challenge shippers faced was the recent surge in diesel prices.

“The decline was almost entirely the result of higher diesel prices as overall capacity remains abundant across modes,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement. “But diesel prices pushed up rates and fuel surcharges leading to a less favorable environment for shippers. It is possible that diesel prices stay elevated for an extended period of time.”