FTR’s SCI sinks to negative record

by Today's Trucking

FTR’s Shippers Conditions Index (SCI) for May, as reported in the July Shippers Update, improved marginally to -11.3. However, freight rates impact on shippers’ conditions were the most negative in the history of the index.

Only a strong improvement in trucking capacity utilization during the month helped offset this grueling rate environment. Fuel costs also swung from a small positive in April to a small negative in May.

highway at night
A strong improvement in trucking capacity utilization during May helped offset a grueling rate environment. (Photo: istock)

Overall, the market has not changed for shippers, and remains extremely challenging. 

Todd Tranausky, vice-president of rail and intermodal at FTR, said, “It remains a period of tough sledding for shippers as utilization and rates will remain difficult factors to offset in the near term. The fall peak season will add increasing pressure to supply chains  and could create additional negative pressure in the index over that period.”

The SCI 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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