Rough Waters for Shippers, reports FTR.

NASHVILLE, TN. — FTR Associates’ Shippers Condition Index (SCI) dropped in September by 0.9 points from August, bringing the current reading to -4.7.

The below zero score is a sign that conditions have started to deteriorate again for shippers after a period of decent conditions this past summer.

The decline, says FTR, is still modest, and conditions are still considerably better than they were earlier in the year.

“With freight carriers maintaining tight discipline on capacity and pricing, even the recent very modest growth in the economy has been sufficient to drive increasing rates," said Larry Gross, senior consultant for FTR.

"Most critical for the 2012 outlook is the ultimate resolution of the pending Federal Motor Carrier Safety Administration ruling on changes in Hours of Service regulations for truck drivers," he said.

"If the new rules contain the revisions previously discussed, and if the courts do not issue a stay as a result of the inevitable legal challenges, then shipping conditions will dramatically worsen in 2012 as a result of extremely tight trucking capacity. Rate escalation and actual trucking capacity shortfalls could be the result.”