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FTR: Shippers’ lot improves

| June 15, 2011

FTR Associates on June 14 reported a significant reversal in its Shippers’ Condition Index from the prior month.

FTR says the healthier environment for shippers is due to a slowdown in freight demand growth thanks to the current lull in economic activity, as well as further delays in implementing new federal trucking regulations.

The SCI sums up all market influences that affect shippers. Larry Gross, FTR senior consultant, said the current “soft spot” in the recovery is providing some breathing room for shippers as the growth in freight has slowed.

“At the same time, we have moved back our forecasts for regulation-based tightening of the supply of trucks, as the federal government has delayed the implementation of new driver regulations,” Gross said. “This is a temporary respite in our view.”

Gross sees the SCI starting to deteriorate once again as the economy begins to reaccelerate later this year. As the new trucking regulations begin to kick in, shipping costs will increase through 2012, with transport costs such as fuel, equipment and labor rising faster than the general rate of inflation, he forecasts.

  • lawrence lamson

    ITS ABOUT TIME!i cant count how many log hours i lost due to the shipper /receiver dragging their tales around 4 hours on end especially when u there for ur appointed time.i1 of the bigges t was when they sent u for a preloaded trailer and u get there and its still empty!so instead ur load has became a live load and u sit for hours 2 load ur “preloaded”trailer.and no otr companies pay u for the wait u have 2 sit 24 hrs before they even think of paying u. strives to maintain an open forum for reader opinions. Click here to read our comment policy.