FTR Associates’ Shippers’ Condition Index (SCI) as reported in the firm’s Shippers Update fell significantly to a reading of -11.4 in May. According to FTR, the drop reflects tightening capacity and accelerating transport costs. 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.
“The recent sharp deterioration in the SCI reflects the twin pressures of tightening capacity and rising fuel surcharges,” says Larry Gross, FTR senior consultant. “Looking ahead, with the slower recent growth in the economy, we are expecting the SCI to begin to stabilize and would not be surprised to even see some modest improvement in the next few months. Such improvement would not, however, change our basic outlook for a difficult environment for shippers through the end of this year and well beyond.”