Shippers Condition Index Keeps Falling, reports FTR

BLOOMINGTON, IN. — FTR Associates’ Shippers Conditions Index (SCI) for January dropped two points, reflecting the “deteriorating conditions for shippers in the early months of 2013,” FTR said today.

The SCI is expected to continue to fall this year, eventually reaching negative double-digits by year-end. Currently, the SCI is sitting at -7.1.

“Our forecast for deteriorating conditions for shippers is based primarily on two assumptions: that the economy will continue to grow slowly and that there will be no further delay in the implementation of the revised Hours of Service rules in July of this year,” explained Lawrence Gross, senior consultant for FTR. “As of this time we see no cause to change either of these assumptions. Field reports indicate a firming of truck rates which is unusual since winter is normally a slack period. The courts may yet put a hold on the change in Hours of Service, but the standard for issuing an injunction is quite high. While no one can predict what the court will do, our best assessment is that no injunction will be issued and the changes will go into effect as planned.”