FTR Shippers Conditions Index remains mired in negative territory

Dec. 23, 2013

FTR's Shippers Conditions Index (SCI) improved marginally for the second straight month in October 2013 edging up 0.4 points from September 2013 to a current reading of -7.5. The number indicates continued tight capacity.

The Shippers Conditions Index should remain close to current levels for the time being. However, continued regulatory pressure and slow growth in demand with no additions to capacity should combine to drive the SCI down, indicating even less favorable shipping conditions as we move further into 2014.

Larry Gross, FTR senior consultant says: "The effects of the continuing rollout of new regulations makes for an unusually challenging forecasting environment, because both the timing and final structure of many proposed regulations are not firmly established. Our forecast, based on the best information we have available at this time, is that regulation will be the principle cause for tighter capacity and higher rates in the coming year."

The Shippers Conditions Index is a compilation of factors affecting the shippers transport environment. Any reading below zero indicates a less-than-ideal environment for shippers. Readings below 10 signal that conditions for shippers are approaching critical levels, based on available capacity and expected rates.