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Shippers’ outlook worsens

| February 16, 2011

FTR Associates said Feb. 15 it has lowered its Shippers Condition Index to reflect tightening carrier capacity, particularly in the truckload sector.

The SCI sums up all market influences that affect shippers; a reading above zero suggests a favorable shipping environment, while a reading below zero is unfavorable. January’s 8.8 reading is the most negative (unfavorable) reading for shippers yet seen during the current recovery.

“The downward progression of the SCI should serve as a warning signal to shippers,” said Noel Perry, senior consultant for FTR. “While trucking capacity is currently adequate during the normally slack winter shipping season, looking forward we expect things to tighten up dramatically as freight demand picks up beginning in March.”

Perry said a shortage of truck drivers, due in part to new government safety regulations, will be the key factor restricting the ability of motor carriers to expand capacity, resulting in higher rates and possible challenges in getting freight moved later in the year.

  • mark weber

    logs are by the hour, loading/unloading by the hour , 25 per fees 20.00 per hour and 5.00 for health and welfare

  • Tall Paul

    Might be worse for shippers, but it sounds good for truckers.
    I’ll believe the “driver shortage ” bs when the store shelves are empty.
    That’s just preparing the way for foreign drivers to be brought in because “Americans won’t do these jobs anymore”. What a crock! strives to maintain an open forum for reader opinions. Click here to read our comment policy.