By LM Staff ·
November 22, 2022
The most recent edition of the Shipping Conditions Index (SCI), which was recently issued by freight transportation consultancy FTR, declined on the heels of two consecutive months of growth.
FTR describes the SCI as an indicator that sums up all market influences that affect the transport environment for shippers, with a reading above zero being favorable and a reading below being unfavorable and a “less-than-ideal environment for shippers.”
For September, the most recent month for which data is available, the SCI reading was -3.1, following readings of 4.5 and 5.0, for July and August, respectively. Both of these readings fared much better than June’s -4.0 and May’s -6.2.
FTR explained that the freight environment was difficult for shippers in September, citing how capacity utilization tightened up and freight volume headed up.
“A slowing freight market will help ease shippers’ pain points over the coming weeks and months with the slow freight growth expected to continue for much of 2023,” said Todd Tranausky, vice president of rail and intermodal at FTR, in a statement. “This will in particular give rail carriers an opportunity to hire to meet demand and use that headcount to improve service levels for the next upward cycle.”
November 22, 2022
Subscribe to Logistics Management Magazine!
Subscribe today. It’s FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
Leave a Reply