FTR’s Shippers Conditions Index (SCI) for March, as reported in the May Shippers Update, fell to -17.8, its lowest reading on record. The March reading was more than five points lower than February reflecting an across-the-board decline month over month in the components that make up the SCI. Conditions are forecast to improve in the coming months, but the SCI will remain negative into 2022.
“While May and June are expected to be the worst months for shippers as rate increases in truck and rail hit their peak for the year, it is possible that the tight conditions could persist for longer,” said Todd Tranausky, vice president of rail and intermodal at FTR. “Capacity is expected to remain a constraining factor for transportation through the end of 2021 as truck and rail each struggle to regain employees lost during the pandemic. Strong consumer and industrial demand means freight volumes will remain strong at the same time, setting up a challenged market for shippers over the next few months.”
The May issue of FTR’s Shippers Update provides a detailed analysis of the factors affecting the March Shippers Conditions Index and provides the forecast for this index through March of 2022. Additional analysis of the flatbed market segment is included.
The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance.
