Even with a little bit of an improvement, the most recent edition of the Shippers Conditions Index (SCI), which was released this week by freight transportation consultancy FTR remained in negative territory.
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 zero being unfavorable and a “less-than-ideal environment for shippers.”
For November, the most recent month for which data is available, the SCI came in at -8.9, which is down from, and an improvement over, October’s -9.6. September and August came in at -8.2 and -6.7, respectively.
Even though the SCI is still negative, FTR said that its forward-looking components portend improvements in 2018, due to lessening capacity pressure brought on by regulations, as well as slower freight growth. But, it noted, there is also a chance near-term conditions could get worse for shippers as the U.S. economy sees continued growth.
“Truckstop.com’s market demand index began January at record levels, but has moderated throughout the month,” said FTR COO Jonathan Starks in a statement. “This is in line with our understanding that capacity constraints could ease during seasonally weaker Q1. Yet the economy continues to expand and ELD enforcement is still around the corner, so shippers won’t find too much relief in the first half of the year. Markets will adjust as we move through the year; carriers will add some capacity, and shippers will develop more ‘carrier-friendly’ operations. However, that will not stop the market from being severely taxed for a majority of 2018 and prices paid for the transporting of goods will reflect that reality.”