FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News


FTR Forecasts Negative Impact for Shippers in 2013

June 14, 2012, 07:00 AM
Filed Under: Transportation

FTR Associates’ Shippers Conditions Index (SCI) for April was basically unchanged from the previous month with a moderately negative reading of -5.4. The index is expected to remain in a tight range throughout the summer, potentially deteriorating marginally in the latter part of the year.

The real negative impact to shippers will begin to occur in 2013 as new Hours of Service rules are expected to put a significant drain on trucking capacity. 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.
Larry Gross, Senior Consultant for FTR, commented, “The current lackluster performance of the economy has had a silver lining for shippers as slow growth in truck freight demand has not caused capacity to tighten to a great extent, keeping a lid on rates. The moment of truth has been delayed but not avoided. We still expect shipping conditions to deteriorate as we move into 2013 unless external events such as the European debt crisis send the economy back into a tailspin – an event that is possible but not considered likely as of this point.”

The Shippers Update, launched by FTR Associates during 2010 as a part of the firm’s Freight Focus Series, looks at conditions that will affect the cost and efficiency of shipping goods via all transportation modes.

Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.