Shipping Conditions Index Expected to Deteriorate

NASHVILLE, IN — Negative impact to shippers is predicted to begin in 2013 as the new Hours of Service rules are expected to put a significant drain on trucking capacity.

In April, the Freight Transportation Research (FTR) Associates’ Shippers Conditions Index (SCI) remained unchanged from the previous month with a moderately negative reading of -5.4.

“The current lackluster performance of the economy has had a silver lining for shippers as slow growth in truck freight demand has not caused capacity to tighten to a great extent, keeping a lid on rates,” said Larry Gross, senior consultant for FTR .

Throughout the summer, the SCI is expected to stay at a negative reading of -5.4 before slowly deteriorating throughout the year.

“The moment of truth has been delayed but not avoided. We still expect shipping conditions to deteriorate as we move into 2013 unless external events such as the European debt crisis send the economy back into a tailspin — an event that is possible but not considered likely as of this point,” Gross said.

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