FTR Shippers Conditions Index tumbles in February

NASHVILLE, IN — The FTR Associates’ Shippers Conditions Index (SCI) for February declined by a full point from the previous month to a reading of -5.6, as demand for trucking services grew strongly in what is normally a slack month.

The SCI sums up all market influences that affect US shippers; a reading above zero suggests a favorable shipping environment, while a reading below zero is unfavorable. Details in FTR’s April Shippers Update, show a still-strengthening US economy which is reducing capacity available to shippers.  The SCI should remain in a relatively tight range through 2012 and then fall into more negative territory as Hours of Service regulations are implemented in 2013. 

“February was unusually strong, with demand for trucking services rising over 4% year-over-year.  This effectively ‘sets the table’ for a relatively tight capacity situation going forward as demand ramps up seasonally in the coming months.  We therefore expect the balance of pricing power to remain firmly on the side of the carriers for the balance of the year,” commented Larry Gross, Senior Consultant for FTR.

The Shippers Update, launched by FTR Associates during 2010 as a part of the firm’s Freight Focus Series, looks at conditions that will affect the cost and efficiency of shipping goods via all transportation modes. The Shippers Update has both history and forecasts for four modal options: truckload, less-than-truckload, intermodal and rail carload. The analysis includes the breakdown of total truck and rail volumes into major commodity segments. It also provides historical snapshots of inland water and air freight markets.