FTR’s Shippers Conditions Index Improves in April
FTR’s Shippers Conditions Index rose in April after a sharp decline the prior month, according to the firm.
The SCI in April rose to a reading of -0.7 from a reading of -4.9 in March. Readings below zero indicate a less-than-ideal environment for shippers, according to FTR.
The rise is expected to be short-lived as diesel prices increase and a temporary hold on federal regulations comes to an end, the firm said.
“Shippers are in what might be considered ‘the eye of the storm’ right now. After a very tight situation last year, conditions have eased as economic growth has slowed while truck capacity is relatively abundant following the congressional rollback of the 34-hour reset regulation. Additionally, fuel prices are down,” FTR senior consultant Larry Gross said in a statement.
“We see little probability of any big near-term increase in demand, but capacity will inevitably begin to tighten once again next year, even at current demand levels, as the implementation date of more new safety regulations including the ELD mandate draws nearer,” Gross said.
Readings below 10 signal that conditions for shippers are approaching critical levels, based on available capacity and expected rates, according to the firm.
