The reversal of fuel cost relief in July was primarily responsible for a deterioration in FTR’s Shippers Index to -8.1 from June’s -5.4 reading. More stable freight rates partially offset that unfavorable shift while the contributions from capacity utilization and volume did not change much. Soaring diesel prices in August and September will push the SCI deeper into negative territory once the data is finalized.
Avery Vise, FTR’s vice president of trucking, commented, “There’s nothing positive for shippers in the near term as freight-related factors – especially rates and utilization – are still unfavorable and diesel prices have surged to a record level – far surpassing the 2022 peak. Very high fuel costs could help loosen the truck freight market over the next few quarters, although other factors would need to align to produce that result. That outcome isn’t the safest bet, but it bears watching.”
The Shippers Conditions Index tracks the changes representing four major conditions in the U.S. full-load freight market. These conditions are freight demand, freight rates, fleet capacity, and fuel price. The individual metrics are combined into a single index that tracks the market conditions that influence the shippers’ freight transport environment. A positive score represents good, optimistic conditions. A negative score represents bad, pessimistic conditions. The index summarizes the industry’s health at a glance.
