Seasonal Capacity Constraints Drive FTR Shippers Conditions Index Down

FTR Associates’ Shippers Conditions Index (SCI) for November dropped 2.5 points from the previous month to a reading of -6.1, reflecting seasonal tightening of shipping capacity.

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. FTR’s January Shippers Update, published January 6, reports that the trucking industry is currently in a stable phase with firm rates and modestly tight capacity, a situation that is expected to continue throughout much of the year. Now that the revised Federal Hours of Service regulations have issued, the acute trucking capacity shortage that had been expected to hit in 2012 has been postponed until 2013.

“The final Hours of Service regulations recently issued by the FMCSA were not as onerous as originally feared,” said Larry Gross, Senior Consultant for FTR. “The enforcement date of mid-2013 provides plenty of time for the inevitable court challenges to proceed without imposing additional uncertainty costs on shippers and carriers. Nevertheless, unless there are further changes in this or other new regulations, or a major economic slowdown between now and the middle of next year, we still project a major capacity shortage in trucking for next summer.”

The January Shippers Update includes commentary on the current status of Hours of Service rules as well as some new truck data. Information about how to subscribe to the Shippers Update, send an e-mail to [email protected] or call 888-988-1699 ext. 1.

Related content: FTR Shippers Condition Index Improves Again

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