September reflects marginally improved environment, FTR reports

While the FTR Shippers Conditions Index (SCI) for September moved into a positive range, the environment for shippers is hardly good, according to FTR Intel. Considering that the average SCI reading in 2019 was +6.0, the increase from -1.79 in August to +0.97 in September is nothing to cheer about. Favorable trends in volume, capacity utilization, and fuel costs offset the unfavorable rate environment during the month.  

The outlook is mostly negative for shippers through the balance of 2020. After modest improvements in early 2021, FTR forecasts the SCI to turn sharply negative mid-2021 due to tighter capacity and higher shipping rates.  

“There is significant uncertainty in the outlook for shippers as the health of the underlying economy remains in doubt,” said Todd Tranausky, vice president of rail and intermodal at FTR.  

The November issue of FTR’s Shippers Update, published November 6, provides a detailed analysis of the factors affecting the September Shippers Conditions Index and provides the forecast for this index through September of 2021. Additional commentary discusses the confluence of factors that are spurring an unprecedented surge in newly authorized motor carriers.

“The remainder of the fourth quarter will be challenged for shippers, but the landscape could change dramatically between now and the early part of 2021,” Tranausky added.