NASHVILLE, IN — While the environment for shippers is still somewhat unfavorable, FTR Associates’ Shippers Condition Index (SCI) showed a slight improvement for December.

The SCI edged up roughly 1-1/2 points, FTR reported yesterday.

Tight equilibrium between demand and transport capacity will keep the SCI stable in modestly negative territory until 2013, at which point it will slip further due to regulatory drag on capacity from the Hours-of-Service rule implementation.

“FTR’s base case anticipates that conditions will continue to be difficult for the nation’s shippers, even though economic growth is still anticipated to be lackluster," said Larry Gross, senior consultant for FTR.

"If the recent spate of good economic news translates into more robust economic growth," he added, "capacity would tighten significantly and greater upward pressure on freight rates will result.”

The SCI sums up all market influences that affect shippers; a reading above zero suggests a favorable shipping environment, while a reading below zero is unfavorable.