BLOOMINGTON, Ind. — FTR’s Shippers Conditions Index declined in February to -0.3 from January’s 0.6 reading, maintaining the near-neutral environment.
“The strong freight activity due mostly to the surge in imports to minimize tariff impacts has peaked, and we expect a much weaker freight environment by early summer,” said Avery Vise, FTR’s vice president of trucking. “Shippers’ own volumes likely will suffer, but a silver lining – at least for traffic managers – is that freight market conditions in the second half should be better than what we had expected before we adjusted our economic and freight market forecasts to reflect the impact of tariffs.
Tight Capacity
According to FTR, tighter capacity and slightly stronger freight volume more than offset lower fuel costs and weaker freight rates during the month. Shippers likely will see tougher market conditions in the second quarter, but the outlook generally is more favorable for shippers than it was in our prior forecast.
“The outlook beyond 2025 is less clear as the longer-term effects of tariffs and potential for resolution of trade disputes are up in the air,” Vise said.