FTR’s Shippers Conditions Index (SCI) fell in June to a 7.9 reading from May’s 8.6 and was impacted negatively by the recent jump in diesel prices. Overall market conditions for shippers were stable and positive during June. However, FTR’s outlook is for progressively weaker readings moving forward due to the projected sharp increase in fuel costs. Less favorable readings of the SCI are on the horizon, FTR says.
“Fuel is one of the most volatile components that can impact shipper conditions through its ability to move fuel surcharges and capacity around. It weakened overall shipper conditions in the latest month, but the SCI remained at a fairly positive level overall,” said Todd Tranausky, vice president of rail and intermodal at FTR. “If fuel prices continue to increase, it will push less positive readings in the SCI in the months ahead.”