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Rail News: Rail Industry Trends

Shippers Conditions Index flatlined in January, FTR says


FTR Associates’ Shippers Conditions Index (SCI) in January remained basically unchanged from December’s level at minus 4.8, according to the organization’s “Shippers Update” report for March.

The index dropped a "modest" 0.2 points to start 2012, reflecting a slow acceleration of freight growth that will continue to drive the index gradually lower over the remainder of the year, FTR officials said in a prepared statement. The SCI summarizes market influences that affect shippers; a reading above zero suggests a favorable shipping environment while a reading below zero reflects the opposite, according to FTR.
“Although our forecast for the economy remains conservative, we anticipate that freight growth will exceed the growth rate in GDP,” said Larry Gross, a senior consultant for FTR. “This will continue to keep transport capacity tight throughout the forecast period, resulting in ongoing upward rate pressure.”
The Shippers Update report includes historical and forecasted data for rail carload, truckload, less-than-truckload and intermodal movements.

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More News from 3/13/2012