FTR Shippers Conditions Index hits highest level since June

Driven by a decrease in diesel prices, the new edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, turned in a solid reading.

FTR describes the SCI as an indicator that sums up all market influences that affect the transport environment for shippers, with a reading above zero being favorable and a reading below being unfavorable and a “less-than-ideal environment for shippers.”

For November, the most recent week for which data is available, the SCI headed up to 6.3, topping October’s reading by 2%. The firm said this reflects the most favorable market conditions for shippers since June 2023, adding that falling fuel prices continue to bolster already positive market conditions and played the largest role in the rising November SCI.

“Although market conditions for shippers have improved for three straight months, we do not expect the trend to continue beyond early 2024,” said Avery Vise, FTR’s vice president of trucking, in a statement. “The recent strength in the SCI has largely been a function of sharply lower fuel costs. Our forecast remains for a gradual weakening of the SCI toward neutral territory by the end of 2024. Shippers will not see the highly favorable conditions they enjoyed during the first half of 2023, but at worst we expect only mildly unfavorable conditions during a portion of 2025.”