As reported in the March Issue of FTR’s Shippers Update, the firm’s Shippers Condition Index (SCI) remained in low territory in February with a value of -5.2. FTR expects the index to fall further as the outlook for capacity shortages worsen in the spring months. Total shipping costs will accelerate rapidly driven by growth in transport costs.
“Shippers should not be heartened by the modest upward movement in the index this month. That is simply the effect of the normal seasonal weakness of freight in February,” says Noel Perry, FTR senior consultant. “The March number will drop sharply as the spring surge in freight arrives.”
The Shippers Update was created by FTR in 2010 to look at conditions that will affect the cost and efficiency of shipping goods via all transportation modes. The SCI sums up all market influences that affect shippers; a reading above zero suggests a favorable shipping environment, while a reading below zero is unfavorable.
