FTR’s Shippers Conditions Index Improves Again in June

Manufacturing is growing very slowly, and construction is weaker

FTR’s Shippers Conditions Index (SCI) rose to a good positive reading in June of 8.8, up two points from the updated May measure.  The June SCI reading is the strongest since February 2016.
 
Freight-related indicators are mixed.  Manufacturing is growing very slowly, and construction is weaker. However, consumer spending remains strong.  TL rates are about 7.5% below 2019 with spot rates down nearly 18% whereas LTL rates have been higher this year.  Both are expected to decline in 2020.   Intermodal rates continue to be soft with rail expecting 5% growth in 2019.
 
 
Todd Tranausky, vice president of rail and intermodal at FTR, commented, “The relatively weak rate environment for truckload allows it to compete more effectively with intermodal. Intermodal volumes have been stymied by trade headwinds, changes in rail service offerings, overall rail service levels, and the weak truck market. International and domestic intermodal each struggled in June with weak results.”
 

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