Following a strong reading in its previous edition, the new edition of the Shippers Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, remained in solid territory.
FTR describes the SCI as an indicator that sums up all market influences that affect the transport environment for shippers, with a reading above zero being favorable and a reading below being unfavorable and a “less-than-ideal environment for shippers.”
For December, the most recent month for which data is available, the SCI was essentially flat, coming in at 6.4, edging out November’s 6.3 reading. October had topped September's 4.3 by 2%, with FTR saying at the time reflected the most favorable market conditions for shippers since June 2023.
And it added that December saw unusually stable conditions, with the outlook heading into 2024 weaker, due to fuel prices stopping a stretch of steady decreases, coupled with freight rates becoming somewhat less favorable.
“We are seeing firmer freight demand than our forecasts had been indicating, and that will start chipping away at the favorable capacity utilization and rate environments that have benefitted shippers for some time,” said Avery Vise, FTR’s vice president of trucking, in a statement. “Shippers should start mulling over how they will respond to a freight market that is considerably more balanced and, therefore, more susceptible to volatility. However, we do not forecast consistently unfavorable conditions for shippers until 2025, and even then, we would not expect negative SCI readings to match the scope of positive readings seen in 2023.”