FTR’s Shippers Conditions Index increased in January, reflecting a reaction to recent fuel-price reductions, according to the firm.
The SCI in January rose to a reading of 2.6. Readings below zero indicate a less-than-ideal environment for shippers, and readings below 10 signal conditions are approaching critical levels, according to FTR.
“With the first positive reading since 2010, it is clear that the market has removed several obstacles. Unfortunately for shippers, I expect that the market will quickly move back toward a negative environment as freight growth continues and regulations are enacted that make capacity tight again, moving base rates higher,” Jonathan Starks, director of transportation analysis for FTR, said in a statement.
“There is also a strong potential for reversal of the recent reductions in fuel prices. All of these factors point toward a notable decline during the rest of 2015,” he said.
Shippers are having difficulty getting a solid view on the underlying costs for truck transportation, according to FTR, due in part because of shifting fuel prices, rising truckload rates and “the skewed nature of the 2014 data due to the weather-induced capacity crunch of the polar vortex.”
