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Rail News: Rail Industry Trends

FTR: Capacity for carriers, shippers continues to tighten


FTR Associates' Shippers Conditions Index for the month of August fell to -6.8, reflecting a slow tightening of capacity for carriers and shippers, according to the firm's Shippers Update, published Oct. 5.

The index is expected to remain near the current reading for the fourth quarter. Shipping costs, along with the "ability to find capacity" will worsen in 2013 as economic conditions improve and new federal regulations affecting the trucking industry are implemented, according to FTR.

"Freight markets currently are mired in a sluggish but stable state. Disciplined carriers are therefore holding back on any capacity additions, setting the stage for tightening as conditions evolve through the early part of next year," said FTR Senior Consultant Larry Gross in a prepared statement. "Barring another significant stumble in the overall economy, we expect things to look substantially different a year from now."

Contact Progressive Railroading editorial staff.

More News from 10/11/2012