FTR’s Shippers Conditions Index once again held close to neutral territory, declining to -0.9 in May from the -0.6 reading in April. The SCI has remained between +1 and -1 for five months.
Avery Vise, FTR’s Vice President of Trucking, commented, “The freight market was slightly weaker for shippers in May than the SCI might imply because falling diesel prices offset mildly unfavorable capacity utilization and freight rates. We expect more negative readings in the near term – in part due to higher fuel costs – but the outlook is more favorable for shippers by late this year. Our forecast doesn’t envision a consistently unfavorable freight market for shippers until 2027, but uncertainty is high concerning both the strength of freight volume and the degree of capacity utilization. Volatility will be the norm for a while.”
This index represents four major conditions in the U.S. full-load freight market. These metrics are combined into a single index that tracks the market conditions that influence a shipper's freight transportation environment.