FTR Shippers Conditions Index for June in Near-Neutral Territory

08.25.16 | FTR

FTR’s Shippers Conditions Index (SCI) for June, at a near-neutral reading of -0.7, reflects slow freight growth typical of late recovery status and a lull in the new capacity-constraining regulations that are not in effect as of yet.  Even though the SCI is only modestly positive at the moment, it is sure to feel favorable to shippers in comparison to the many difficulties experienced last year.  FTR forecasts that the index will soon start a downward trajectory as regulatory drag is factored in later in 2016 and into 2017. 

The Shippers Conditions Index is a compilation of factors affecting the shippers transport environment.  Any reading below zero indicates a less-than-ideal environment for shippers.  Readings below -10 signal conditions for shippers are approaching critical levels, based on available capacity and expected costs.  Details of the factors affecting the June Shippers Conditions Index, along with commentary examining the impact of the new Food Safety Modernization Act (FSMA), are found in the August issue of FTR’s Shippers Update published August 8, 2016.

Click here to view the latest release and an interactive graph of the SCI>

Larry Gross, Partner at FTR, commented, “There is always uncertainty associated with a forecast, but our prediction for tightening truck capacity comes with two very important caveats:  firstly - that the economy does not slow further from the current, anemic growth rate; and secondly - that there is no delay or interruption in the Federal truck regulatory agenda.  The litigation currently underway against the Electronic Logging Device regulation by the Owner Operators Independent Driver Association (OOIDA) holds the potential for derailing the regulatory train if the court were to decide to issue an injunction.  A hearing will be held in September.  Meanwhile, the White House has approved the release of a draft speed limiter regulation which, depending on how it reads, may put an additional large dent in truck capacity when and if it is implemented, probably in 2018.”

For more than two decades, FTR has been the thought leader in freight transportation forecasting in North America.  The company’s national award-winning forecasters collect and analyze all data likely to impact freight movement, issuing consistently reliable reports for trucking, rail, and intermodal transportation, as well as providing demand analysis for commercial vehicle and railcar.  FTR’s forecasting and specially designed reports have resulted in advanced planning and cost-savings for companies throughout the transportation sector.

The Shippers Update, launched by FTR during 2010 as a part of the firm’s Freight Focus, looks at conditions that will affect the cost and efficiency of shipping goods via all transportation modes. North American shippers will find in one reference the essential information they need on freight volumes, equipment capacity and transport costs and rates.

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. The freight data is augmented by an abundant collection of supporting data covering macro-economics and the fuel market.

For more information about how to subscribe to the Shippers Update, send an e-mail to [email protected] or call Ryan Beall at (888) 988-1699 ext. 1.
Click here to view a sample report >