BLOOMINGTON, Ind. — FTR’s Shippers Condition Index fell significantly in August to a -15.4 reading from July’s -8.1, reflecting mostly a renewed surge in fuel costs.
“We obviously knew that the SCI would take a big hit due to diesel prices jumping more than 50 cents a gallon on average in August after declining in June and July,” said Avery Vise, FTR’s vice president of trucking. “Freight rates and tight capacity remain major challenges for shippers, but at least the pain in those areas is not worsening at the rate it was earlier in the year.”
Freight rates were also a larger negative for shippers in August but only marginally so. With diesel prices hitting a record in September, further deterioration likely occurred during that month and will be reflected in the SCI once the data is finalized.
“With fuel costs surging to a record high in September, the market continues to be highly unfavorable for shippers, and any prospects for near-term relief seem speculative,” Vise said. “We expect further stabilization in rates and utilization, but both factors look at least mildly negative for shippers over the forecast horizon.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe.
