The biggest boost to the shipper environment came from falling diesel prices with conditions measured by FTR’s Shippers Conditions Index (SCI) staying in positive territory in August, improving to a 5.0 reading up from 4.5 in July. 

Core freight conditions – demand, capacity, utilization, and freight rates were mildly favorable for the month, the industry forecaster said. The outlook is for market conditions to hover around the neutral territory with some slightly positive and some slightly negative readings through 2023 when readings are expected to become more solidly negative.

Todd Tranausky, vice-president of rail and intermodal at FTR, said, “Shippers face multiple rounds of uncertainty in the coming months as diesel prices turn back higher and the harvest competes for capacity with other freight, while overall active trucking utilization eases back toward its historical average.”