Bloomington, IN (August 19, 2014) FTR Associates’ Shippers Conditions Index (SCI) for June fell only marginally from the previous month to a current reading of -8.1. The minimal change reflects a relatively weak freight environment offsetting increased capacity constraints in advance of the Hours of Service rule implementation.
FTR Associates’ Shippers Conditions Index (SCI) for June fell only marginally from the previous month to a current reading of -8.1. The minimal change reflects a relatively weak freight environment offsetting increased capacity constraints in advance of the Hours of Service rule implementation. The SCI is expected to remain in a tight range close to the current reading through year end. The Shippers Conditions Index 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 June Shippers Conditions Index are found in the August issue of FTR’s Shippers Update published August 12.
Lawrence Gross, Senior Consultant for FTR commented “The June SCI does not yet reflect the new Hours of Service regulations that are now the law of the land. We estimate that the onset of these new regulations will eventually pull about three percent of truck capacity out of the system. Offsetting this removal of capacity is the currently weak freight environment due to an economy which is growing slower than we had expected (or hoped). The net effect is to postpone significant tightening of capacity into later this year or even next year, depending on what happens with the economy.”
Additional commentary included in the current issue of the Shippers Update discusses the economy and what we can expect for the balance of year. For more information about how to subscribe to the Shippers Update, send an email to firstname.lastname@example.org or call Clay Davis at 1-888-988-1699, 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.