Fleet Management

FTR Shippers Conditions Index Improves in November, but Concerns Linger

January 23, 2014

SHARING TOOLS        | Print Subscribe

FTR’s Shippers Conditions Index conditions for November, at -6.0, continued to reflect a negative environment for shippers despite improving for the third straight month after hitting a low point in August.

This SCI index will continue to moderate mildly as regulatory pressures are temporarily reduced because of weak freight multipliers due to a shift in the economic mix from industry to service. However, FTR, a freight transportation forecasting firm, reports some evidence from the field of continued tightening capacity which presents some serious downside risks to shippers.
 
Eric Starks, president for FTR, commented: “We are currently seeing things tighten up in the market, and it is not yet reflected in the November numbers. I would expect to see the SCI index weaken further as we move through the first quarter. This is not a good sign for shippers. The biggest concern right now is a tightening in trucking capacity.

"In early December, we saw a spike in capacity utilization and it was exacerbated by the recent storms. It will be interesting to see if the tightness continues as we start to approach February. If it does, then we will likely see a surge in shipping rates for all of 2014, as shippers typically put out bids and lock-in contract rates in the first quarter for the balance of the year.”
 

Comment On This Story

Name:  
Email:  
Comment: (Maximum 2000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

Newsletter

We offer e-newsletters that deliver targeted news and information for the entire fleet industry.



GotQuestions?

LUBRICANTS

The expert, Mark Betner from Citgo will answer your questions
Ask a question

Sponsored by


WHEEL ENDS SOLUTIONS

Wheel end expert Jeff Geist from STEMCO will answer your questions
Ask a question

Sponsored by

Magazine