FTR Shippers Conditions Index Rose in May to 8.6 With a Moderately More Favorable Environment

“The Shippers Conditions Index rose in May as it became more obvious that there would be abundant capacity available in the system for longer during 2023“

FTR’s Shippers Conditions Index (SCI) rose in May to 8.6 from a 7.1 reading in April.  The environment for shippers was moderately more favorable in May due to lower fuel costs and freight rates along with slightly weaker freight volume. The outlook is positive through mid-2024.
 
Todd Tranausky, vice president of rail and intermodal at FTR, commented, “The Shippers Conditions Index rose in May as it became more obvious that there would be abundant capacity available in the system for longer during 2023. While there are signs that capacity may be as loose as it is going to get, economic uncertainty could keep some shippers on the sidelines as they weigh their own inventory situation.”
 
The July issue of FTR’s Shippers Update, published July 7 provides a detailed analysis of the factors affecting the May Shippers Conditions Index and provides the forecast for this index through May of 2024. The July edition explores whether recent strength in the automotive and housing markets could buffer anticipated declines in consumption.
 
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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