FTR’s Shippers Conditions Index rose to 4.3 in October, up from 0.35 in September, according to the latest data from the freight industry research firm. In October, the most significant improvement was the reversal of the increase in diesel prices, but all major factors were at least marginally more favorable.
“Overall market conditions for shippers in October as measured by the SCI were the most favorable since June, but swings in fuel costs largely have been the variable month to month,” said Avery Vise, FTR’s VP of trucking. “Key freight dynamics—rates, utilization, and volume—have been mostly stable over the past several months and look to be so for at least a few months of 2024. After the boosts from falling diesel prices in November and December 2023, we expect market conditions for shippers to soften gradually, but we do not foresee significantly negative conditions during the forecast horizon.”
See also: FTR: TCI improved in September, but trucking conditions remain tough
A detailed analysis of the factors affecting the October SCI is part of FTR’s Shippers Update. The report also provides a forecast for this index through October 2024. The December edition includes additional commentary analyzing why payroll employment at truckload carriers remains high despite a sluggish freight environment.
The SCI tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks market conditions that affect shippers' freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions.
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