Shippers Index Falls, Pricing Power With Carriers

NASHVILLE, IN – FTR Associates’ Shippers Conditions Index (SCI) for February declined by a full point from the previous month as demand for trucking services grew in what is typically a lax month.

An SCI reading above zero means a favorable environment for shippers, while a negative reading is unfavorable. The SCI is currently at -5.6.

This shows a still-strengthening economy and a reduction in available capacity for shippers, FTR said.

“February was unusually strong, with demand for trucking services rising over 4 percent year-over-year,” explained Larry Gross, senior consultant for FTR, “This sets the table for a relatively tight capacity situation going forward as demand ramps up seasonally in the coming months.”

Gross added that they expect the balance of pricing power to stay on the side of carriers for the rest of 2012.

The SCI is expected to remain in relatively tight range through 2012, before dropping deeper into negative territory as Hours-of-Service regs are implemented in 2013.

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