December 18, 2013
FTR’s Shippers Conditions Index (SCI) improved marginally for the second straight month in October edging up 0.4 points from September to a current reading of -7.5.
FTR says the Shippers Conditions Index should remain close to current levels for the time being. However, continued regulatory pressure and slow growth in demand with no additions to capacity should combine to drive the SCI down, indicating less favorable shipping conditions as we move further into 2014, the company says.
“The effects of the continuing rollout of new regulations makes for an unusually challenging forecasting environment, because both the timing and final structure of many proposed regulations are not firmly established,” says Larry Gross, FTR senior consultant. “Our forecast, based on the best information we have available at this time, is that regulation will be the principle cause for tighter capacity and higher rates in the coming year.”
The Shippers Conditions Index is a compilation of factors affecting the shippers transport environment. Any reading below zero indicates a less-than-ideal environment for shippers. Readings below 10 signal that conditions for shippers are approaching critical levels, based on available capacity and expected rates.