BLOOMINGTON, Ind. — FTR’s Shippers Conditions Index for June fell to -3.6 as shippers faced their toughest market conditions in three years, although a big element contributing to the decline was the spike in fuel prices due to the now-eased tensions with Iran.
“The freight market still looks soft well into next year but not quite as soft as it did a month ago,” said Avery Vise, vice president of trucking, FTR. “While that’s not great news for shippers, it’s not really bad news, either. Still, the range of possibilities remains broad due to an uncertain impact from recent tariff hikes potentially offset by a boost in activity due to lower financing costs and July’s enactment of tax cuts. Another wild card is capacity, which has been surprisingly resilient but might not be able to withstand rising insurance costs and other cost and regulatory pressures.”
Fuel volatility aside, the market looks basically neutral for shippers in the near term.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
