FTR’s Shippers Conditions Index (SCI) for March was calculated at 19.7, which more than doubled the level of February, and reflects the most favorable market conditions ever. Operational challenges remain, but utilization, rates, and fuel costs all turned highly favorable due to COVID-related influences.

FTR projects that increasingly favorable conditions for shippers will likely send this index significantly higher in Q2, as plunging capacity utilization causes rates to fall and fuel costs sink further.

“We know that the SCI is going to surge in the second quarter as the pandemic drove freight levels down, thus, freeing up an unprecedented amount of trucking capacity,” said Eric Starks, chairman and CEO at FTR. “The real question is when will the turning point occur and start to move the SCI lower again? With recent freight data through the end of May showing an uptick in activity, the SCI should move in an inverse fashion and drive the index number lower in June.”

The May issue of FTR’s Shippers Update, published May 7,  details the factors affecting the March Shippers Conditions Index. Additional commentary updates the COVID-19 discussion including FTR’s view on what a restart to the economy might look like.

“One thing we will be watching is a potential shortage of capacity available for shippers in the short-term as carriers and drivers adjust to any sporadic upsurge in regional demand over the next several months,” said Starks. “However, much will depend on the spread of the coronavirus and its impact on the broader economy.”