FTR's Shippers Conditions Index (SCI) for July, with a reading of -8.3, was basically unchanged from the previous month.
FTR's Shippers Conditions Index (SCI) for July, with a reading of -8.3, was basically unchanged from the previous month, reflecting relatively modest freight volume growth combined with some capacity constraints caused by new regulations.
The SCI is expected to remain in a tight range close to the current reading until increased regulatory drag negatively affects capacity and spurs rate increases in 2014. The SCI is a compilation of factors affecting shippers transport environment. Any reading below zero indicates a less-than-ideal environment for shippers. Readings below 10 signal that conditions for shippers are approaching critical levels based on available capacity and expected rates. Details of the factors affecting the July SCI are found in the September issue of FTR's Shippers Updatepublished September 12.
"Truck capacity has been able to readily adjust to any increases in demand due to the slow growth environment that has characterized this recovery,” said Jonathan Starks, director of transportation analysis for FTR. “If freight demand shows any sort of surge over the next few quarters it will become much more difficult for shippers to find the spare capacity to keep operations flowing smoothly. With so little spare capacity in the truck environment at any given time we believe that rates will be moving higher during the fall peak, and once again during the spring."
Additional commentary included in the current issue of the Shippers Updatelooks at the intermodal sector to quantify its importance and some of the factors driving its growth. For more information about how to subscribe to theShippers Update, send an e-mail to email@example.com call (888) 988-1699 ext. 1.