FTR Shippers Conditions Index Rose in April in Response to Weaker Rates and Capacity Utilization

Outlook is for a firmly positive outlook for shippers in the economic balance of power between themselves and carriers for at least another 12 months

FTR’s Shippers Conditions Index (SCI) in April rose to 7.1 from a 4.5 reading in March.  A weaker environment for both freight rates and carrier utilization more than offset slightly stronger freight demand and a deceleration of fuel cost decreases in April.  The outlook is positive through mid-2024.
 
Todd Tranausky, vice president of rail and intermodal at FTR, commented, “Shippers conditions improved in April as weaker rates and carrier utilization helped support shippers. The outlook is for a firmly positive outlook for shippers in the economic balance of power between themselves and carriers for at least another 12 months. Economic uncertainty or a higher than expected amount of economic weakness could bump that time frame further out into the future and extend the good ride shippers have had over the last few months.”

The June issue of FTR’s Shippers Update, published June 6 provides a detailed analysis of the factors affecting the April Shippers Conditions Index and provides the forecast for this index through April of 2024. The June edition also addresses the potential for demand and production in the automotive sector to outpace prior expectations.  

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.

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