Bloomington, IN (February 13, 2013) FTR Associates’ Shippers Conditions Index (SCI) for December came in with a reading of -4.9 reflecting tightening capacity which is expected to get significantly worse by mid-2013. Transport costs will continue to rise as freight continues to grow and new federal regulations reducing trucking capacity kick in, with the SCI reading expected to be about five points lower than the current reading by mid-summer. The Shippers Conditions Index is a compilation of factors affecting shippers transport environment. Any reading below zero indicates a tough environment for shippers. Readings below 10 signal that conditions for shippers will be near critical levels, based on available capacity and expected rates. Details of the factors affecting the December Shippers Conditions Index are found in the February issue of FTR’s Shippers Update published February 8.
FTR Associates’ Shippers Conditions Index (SCI) for December came in with a reading of -4.9 reflecting tightening capacity which is expected to get significantly worse by mid-2013. Transport costs will continue to rise as freight continues to grow and new federal regulations reducing trucking capacity kick in, with the SCI reading expected to be about five points lower than the current reading by mid-summer. The Shippers Conditions Index is a compilation of factors affecting shippers transport environment. Any reading below zero indicates a tough environment for shippers. Readings below 10 signal that conditions for shippers will be near critical levels, based on available capacity and expected rates. Details of the factors affecting the December Shippers Conditions Index are found in the February issue of FTR’s Shippers Update published February 8.
Jonathan Starks, director of transportation analysis for FTR, commented, “Despite recent problems emanating from issues at the federal level, most indicators point to continued modest growth in both the economy and freight markets. The biggest transport issue that arose at the end of 2012 was the reduction in inventories. Shipping managers will be quickly turning their attention to the looming Hours-of-Service (HOS) changes that are scheduled for July 1st. Those rules will have a varied impact on shippers depending on how their operations are currently set up. Many will take a substantial hit to the productivity of their trucking operations, some as great as a 10% hit. The need for additional equipment and drivers will create additional pressure for truck rates to move higher later in the year.”
Commentary included in the current issue of the Shippers Update explores the impacts of several notable updates to FTR’s data. For more information about how to subscribe to the Shippers Update, send an e-mail to sales@ftrassociates.com, call 888-988-1699 ext. 1 or visit the report page by clicking here.
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. TheShippers 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 Bloomington, 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.
