FTR Associates says while its Shippers Condition Index is currently at neutral, it expects that will shortly change as carrier capacity tightens and the economy comes out of its recent pause.


The transportation forecasting and analysis firm said its Shippers Condition Index, as reported in the January issue of the Shippers Update, was hovering near the neutral reading of zero at the end of 2010, reflecting the continuing effects of the earlier pause in the economic recovery.

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. The Shippers Update, launched by FTR Associates during 2010 as a part of the firm's Freight Focus Series, looks at conditions that will affect the cost and efficiency of shipping goods via all transportation modes.

In the January 2011 Shippers Update released on January 10, FTR projects the next surge in truckload rates will come about during the second quarter as freight picks up seasonally. Less-than-truckload rates, while increasing through 2011 and 2012, will lag behind TL rates because of more favorable driver hiring conditions.

Improving freight growth will also increase freight rates for both rail and intermodal segments as well through 2011 and 2012.