For More Information Contact:
Chris Kemmer, Consultant
CK Marketing & Communications
614-459-9369/614-596-3730
chris@ck-marketing-communications.com
or
Seth Teeters
Marketing Manager
888-988-1699, ext. 16
steeters@ftrintel.com
FOR IMMEDIATE RELEASE
FTR’s April Shippers Conditions
Index Falls to New Low
Bloomington, IN (June 29, 2018) The
Shippers Conditions Index (SCI) reading from FTR fell further into double digit
negative territory in April at -13.4 signifying that there has not been capacity
or rate relief for shippers in the current strong freight environment. April may be the nadir in this cycle as
conditions likely will not get significantly worse for shippers over the
balance of the year. Overall y/y rate
growth is close to near-term peak. Shippers could see some stabilization in
2019 as more capacity comes on line.
However, there is no expectation for lower rates on an absolute basis
until at least late 2019. Total shipping
costs, with transportation the largest share, are forecast to rise an estimated
12% y/y in 2018 with another 5% increase expected in 2019.
Jonathan Starks,
chief intelligence officer at FTR, commented, “Truckstop.com’s
Market Demand Index for the past four weeks remains nearly double 2017. The
spot market is producing record rates every few weeks, though this trend will
soon hit its peak.”
Todd Tranausky, senior transportation analyst at FTR, commented, “Shippers
facing significant increases in rates for truck and rail intermodal movements
have not yet seen relief. However, record truck orders should begin hitting the
market in the second half of the year, and we are closely watching the driver
situation, which will determine if shippers see improvements as the trucks
become available.”
The June issue of FTR’s Shippers
Update, published June 8, 2018, details the factors affecting the February
Shippers Conditions Index plus an assessment of the regulatory impacts on the
market.
The Shippers Conditions Index tracks
the changes representing four major conditions in the U.S. full-load freight
market. These conditions are: freight demand, freight rates, fleet capacity,
and fuel price. The individual metrics are combined into a single index that
tracks the market conditions that influence the shippers’ freight transport
environment. A positive score represents good, optimistic conditions. A
negative score represents bad, pessimistic conditions. The index tells you the
industry’s health at a glance. In life, running a fever is an indication of a
health problem. It may not tell you exactly what’s wrong, but it alerts you to
look deeper. Similarly, a reading well below zero on the FTR Trucking
Conditions Index warns you of a problem...and readings high above zero spell
opportunity. Readings near zero are consistent with a neutral operating
environment. Double digit readings (both up or down) are warning signs for
significant operating changes.
For more than two decades, FTR has
been the thought leader in freight transportation forecasting in North America.
The company’s national award-winning forecasters collect and analyze all data
likely to impact freight movement, issuing consistently reliable reports for
trucking, rail, and intermodal transportation, as well as providing demand
analysis for commercial vehicle and railcar. FTR’s forecasting and specially
designed reports have resulted in advanced planning and cost-savings for
companies throughout the transportation sector.
For more information about the work
of FTR, visit www.FTRintel.com, follow us on Twitter
@ftrintel, or
call (888) 988-1699, ext. 1.
To access charts suitable to
accompany this release, please go to:
http://info.ftrintel.com/l/66642/2015-08-26/3bml9t