Shippers Conditions Index for December Highest Since August 2016

Trucking Conditions were primarily driven by improved freight volume and lower fuel prices

After a basically neutral reading in November, FTR’s Shipping Conditions Index (SCI) moved into positive territory in December. The December SCI measure at 1.7 was the strongest for the index since August of 2016. After a short weakening period in 2019Q1, the SCI is expected to maintain the December level through the balance of the year. The unusual dual positive readings in December for measuring both Shippers Conditions as well as Trucking Conditions were primarily driven by improved freight volume and lower fuel prices without much change in freight rates.
 
Todd Tranausky, vice president of rail and intermodal at FTR, commented, “Stable fuel prices, a turn in rail service levels, and loosening truck capacity have combined to create a favorable environment for shippers seeking to move freight. The situation is forecast to continue for much of 2019, as fuel prices remain stable and economic conditions hold firm.”
 
The February issue of FTR’s Shippers Update, published February 8, 2019, details the factors affecting the December Shippers Conditions Index. Also included is an analysis of the state of the spot market.
 

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.

Category: Featured, General Update, News