REPORT: Market Improving For Shippers As Truckload Rates Continue Weakening
Little Rock, Arkansas – The outlook for the remainder of 2019 is improving for shippers, according to new analysis by trucking market analyst FTR.
FTR reports its March Shippers Conditions Index (SCI) rose two full points from February to a reading of 2.8 reflecting a continued easing of truckload and intermodal rates.
The report identified fuel price increases and capacity utilization in trucking, which can result in added costs for shippers, as key areas to watch going forward.
Todd Tranausky, vice president of rail and intermodal at FTR, commented, “Shippers are benefiting from relatively stable fuel prices and weaker trucking capacity utilization than they experienced in 2018.”
Tranausky said both of those metrics are expected to tighten up as the year progresses.
“Diesel prices could move up in the fourth quarter ahead of the IMO 2020 fuel mandate, which could pressure fuel surcharges higher late in 2019,” he explained.
About FTR’s SCI
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.