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Shippers Condition Index remains in low territory

As reported in the March 2011 issue of FTR’s Shippers Update, the firm’s Shippers Condition Index (SCI) remained in low territory in February with a value of –5.2. FTR expects the index to fall further as the outlook for capacity shortages worsen in the seasonally strong spring months.

Total shipping costs will accelerate rapidly, driven by growth in transport costs. 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.

Noel Perry, senior consultant for FTR, said, “Shippers should not be heartened by the modest upward movement in the index this month. That is simply the effect of the normal seasonal weakness of freight in February. The March number will drop sharply as the spring surge in freight arrives.”

The March Shippers Update includes commentary on another new federal regulation—for speed controls—and how this and other upcoming regulations are likely to impact carriers and shippers. For information on how to subscribe, e-mail [email protected] or call 888-988-1699 ext 1.

TAGS: Archive Trends
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