FTR Shippers Conditions Index reflects tightening capacity

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FTR Associates on Thursday, Oct. 11, said its Shippers Conditions Index for August fell to a reading of -6.8, reflecting a slowly tightening capacity environment for carriers and shippers. Shipping costs, along with the ability to find capacity, will begin to grow worse in 2013 as economic conditions improve just as new federal regulations affecting trucking are implemented, FTR said.

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. FTR expects that with an economy that continues to tread water, the SCI to remain close to the current reading through the fourth quarter of this year.

“Freight markets currently are mired in a sluggish but stable state,” said Larry Gross, FTR senior consultant. “Disciplined carriers are therefore holding back on any capacity additions, setting the stage for tightening as conditions evolve through the early part of next year. Barring another significant stumble in the overall economy, we expect things to look substantially different a year from now.”