FTR Reports Shippers Conditions Index Starts Expected Decline in July
Nashville, IN (September 14, 2012) FTR Associates’ Shippers Conditions Index (SCI) for July fell to a reading of -4.5 starting the expected steady decline as shippers and carriers feel the impact of increased regulatory drag heading into 2013. 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 period begins what FTR characterizes as an inflection point where costs and rates will begin moving up if the U.S. economy continues to sustain a relatively healthy freight market as new regulations take hold. The forecasted tightening of capacity and associated increased shipping costs will continue to negatively impact the Shippers Conditions Index unless the economy slows more than expected. Details of the factors affecting the July Shippers Conditions Index are found in the September issue of FTR’s Shippers Update published September 10, 2012.
Larry Gross, Senior Consultant for FTR, commented, “FTR’s base outlook calls for shipping conditions to deteriorate as freight volume grows slowly and government regulations are implemented, adversely affecting driver productivity. This assumes that the Euro crisis remains contained and that the Federal government does not drive the economy off the “fiscal cliff” at year-end. If either scenario occurs, we would consider a recession likely, causing freight demand to drop and eliminating any potential capacity issues and driving improvement in shipping conditions.”
The current issue discusses downside economic scenarios. 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.
The current period begins what FTR characterizes as an inflection point where costs and rates will begin moving up if the U.S. economy continues to sustain a relatively healthy freight market as new regulations take hold. The forecasted tightening of capacity and associated increased shipping costs will continue to negatively impact the Shippers Conditions Index unless the economy slows more than expected. Details of the factors affecting the July Shippers Conditions Index are found in the September issue of FTR’s Shippers Update published September 10, 2012.
Larry Gross, Senior Consultant for FTR, commented, “FTR’s base outlook calls for shipping conditions to deteriorate as freight volume grows slowly and government regulations are implemented, adversely affecting driver productivity. This assumes that the Euro crisis remains contained and that the Federal government does not drive the economy off the “fiscal cliff” at year-end. If either scenario occurs, we would consider a recession likely, causing freight demand to drop and eliminating any potential capacity issues and driving improvement in shipping conditions.”
The current issue discusses downside economic scenarios. 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.