FTR Reports Shippers Conditions Index Remains at Near Neutral Reading

Nashville, IN (August 15, 2012) FTR Associates’ Shippers Conditions Index (SCI) for June was basically unchanged from the previous month and remains in near neutral territory at a reading of -1.8. 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.

The current reading reflects the inability of carriers to increase rates in what is turning out to be a disappointing economic recovery, so shippers are holding their own right now. However, the index is expected to fall as we head into 2013 when regulations affecting trucking fleet productivity will reduce available shipping capacity and put a strain on shippers’ ability to find fleets willing to haul their freight at rates that are advantageous to them. Details of the current factors affecting the June Shippers Conditions Index are found in the August issue of FTR’s Shippers Update published August 9.

Larry Gross, Senior Consultant for FTR, commented, “The freight markets are currently in a state of fragile equilibrium, which we expect to persist in some form through the peak shipping season. Weak economic growth is leading to very slow growth in freight demand. This is being countered by strong discipline by carriers, resulting in an environment where rates are rising quite slowly and capacity remains generally available.”

The current issue includes a discussion of how shippers might be impacted as trucking fleets consider natural gas as a possible fuel alternative. For more information about how to subscribe to the Shippers Update, send an e-mail to sales@ftrassociates.com or call 888-988-1699 ext. 1.

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. North American shippers will find in one reference the essential information they need on freight volumes, equipment capacity and transport costs and rates. The Shippers Update has both history and forecasts for four modal options: truckload, less-than-truckload, intermodal and rail carload. The analysis includes the breakdown of total truck and rail volumes into major commodity segments. It also provides historical snapshots of inland water and air freight markets. The freight data is augmented by an abundant collection of supporting data covering macro-economics and the fuel market.

FTR Associates, located in Nashville, IN has been a leader in transportation forecasting for over 20 years. The company’s U.S. Freight Model collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups. FTR Associates’ forecast reports cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar. Specially designed reports are offered to participants in both industries to cover specific needs. For more information about the work of FTR Associates, visit www.ftrassociates.com or call Helen Lile at 888-988-1699 Ext. 45.