Shippers Conditions Index Improves Sharply in May

Market conditions are the most favorable for shippers in years

FTR’s Shippers Conditions Index (SCI) for May improved sharply to a reading of 5.6, nearly four points higher than the April reading.  Market conditions are the most favorable for shippers in years and are expected to continue in the current range for the remainder of 2019.  The principal strength is continued softening of truckload and intermodal rates with rail stabilizing.  Fuel prices may put some pressure on shipper costs due to the recent rise in crude prices; however, those increases appeared to level off at under $60/barrel.

Todd Tranausky, vice president of rail and intermodal at FTR, commented, “Softness in freight volumes combined with more abundant capacity in the truckload market than was present last year have made it a good time to be a shipper. Sustained weakness in freight volumes through the summer suggest the positive results for shippers could continue for much of the rest of 2019.”

The July issue of FTR’s Shippers Update, published July 8, 2019, details the factors affecting the May Shippers Conditions Index. Also included is data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.

The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market

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