FTR Shippers Condition Index: Truckers in the driverís seat
Sep 23, 2011 12:18 PM
FTR Associatesí Shippers Condition Index (SCI) as reported in the September Shippers Update edged lower in July to a current reading of -3.8. 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.
After a brief term of improving conditions for shippers, FTRís SCI has now once again begun to fall as had been expected. The deterioration reflects the current trucking situation in which demand has completely utilized the available fleet capacity leaving little room for even modest seasonal increases in activity. FTR is forecasting a declining environment for shippers through the remainder of this year and well into 2012.
Larry Gross, Senior Consultant for FTR commented: ďEvents are unfolding as we had projected with regard to shipping conditions. Carriers have ďright-sizedĒ to meet current demand levels and are reluctant to add capacity given the high level of economic uncertainty. Moreover, tightening driver availability means that even those truckers that wish to add capacity are finding it difficult to do so. The result is higher freight rates even in the face of the soft economy. We expect this situation to persist into next year as expected new government trucking regulations will reduce the productivity of the trucking industry and therefore its effective capacity.Ē
The September Shippers Update includes commentary discussing the possibility that the swing in pricing power from shippers to truckers could be a long-term trend. For more information on the Shippers Update, send an e-mail to firstname.lastname@example.org or call 888-988-1699 ext 1.
© 2013 Penton Media Inc.
Acceptable Use Policy blog comments powered by Disqus