FTR Associates' Shippers Conditions Index Fell in August

The August FTR Associates Shippers Conditions Index fell to a reading of -6.8, indicating carriers and shippers are tightening capacity.

FTR Associates’ Shippers Conditions Index (SCI) for August fell to a reading of -6.8 reflecting a slowly tightening capacity environment for carriers and shippers. With an economy that continues to tread water, FTR expects the SCI to remain close to the current reading through the fourth quarter of this year. 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. The SCI readings will reflect the added challenges facing shippers at that time. Details of the factors affecting the August Shippers Conditions Index are found in the October issue of FTR’s Shippers Update published October 5.

Larry Gross, Senior Consultant for FTR, comments, “Attendees at the recently concluded FTR Transportation Conference concurred that freight markets currently are mired in a sluggish but stable state. 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.”