Market conditions for shippers in June indicate “the worst may be over for now,” according to FTR, who publishes its Shippers Conditions Index monthly. However, the firm cautions that conditions have not improved much, with rates still climbing, particularly in the truckload sector.
Total shipping costs for 2018 should be around 12 percent higher than 2017, with 2019 forecast to be up another 6 percent. Overall, there are some signs of stability coming into the market for drivers, capacity and rates, FTR says.
“While conditions have stabilized in the truckload and rail sectors, they remain far from where shippers would like them to be heading into the crucial peak season,” says Todd Tranausky, FTR’s vice president for rail and intermodal. “Shippers should expect the service they have now to be the service they have through the balance of the year.”