The new edition of the Shippers Conditions Index, which was issued this week by freight transportation consultancy FTR, turned negative for only the second time since August 2023.
FTR describes the SCI as an indicator that sums up all market influences that affect the transport environment for shippers, with a reading above zero being favorable and a reading below being unfavorable and a “less-than-ideal environment for shippers.”
For December, the most recent month for which data is available, the SCI came in at -1.8, following a 2.3 November reading, which was preceded by October’s 1.3 reading, which fell from September’s 4.6 reading. The August SCI was 2.9, with July at 0.5; June at 0.3; May at 4.5, and June at 3.0—which was preceded by several months of declines.
The firm cited sharply stronger freight volume and capacity utilization in December impacted market conditions for shippers, with a marginal impact on freight rates.
“Market conditions for shippers likely will be volatile in the near term as the supply chain reacts to the plethora of tariff impositions and threats as well as similar measures such as the proposed port access fee related to China,” said Avery Vise, FTR’s vice president of trucking. “Our forecast for the SCI is slightly weaker than it was previously but generally not as weak as it was in December. Although we expect market conditions over the course of the year to be only slightly negative for shippers, that outlook probably is of little consolation for traffic managers having to navigate a chaotic business environment day to day and week to week.”
