FTR’s Shippers Condition Index fell significantly in August to a -15.4 reading from July’s -8.1, reflecting mostly a renewed surge in fuel costs. Freight rates were also a larger negative for shippers in August but only marginally so. With diesel prices hitting a record in September, further deterioration likely occurred during that month and will be reflected in the SCI once the data is finalized.

The October FTR’s Shippers Update includes commentary that discusses agricultural volume in rail carload, which has led the way in growth this year but likely will moderate in the months ahead.

Avery Vise, FTR’s vice president of trucking, commented, “We obviously knew that the SCI would take a big hit due to diesel prices jumping more than 50 cents a gallon on average in August after declining in June and July. Freight rates and tight capacity remain major challenges for shippers, but at least the pain in those areas is not worsening at the rate it was earlier in the year.

“With fuel costs surging to a record high in September, the market continues to be highly unfavorable for shippers, and any prospects for near-term relief seem speculative. We expect further stabilization in rates and utilization, but both factors look at least mildly negative for shippers over the forecast horizon.”