Olaf Simon AdobeStock_350588461
FTR’s January Shippers Conditions Index (SCI) fell into negative territory in February for the first time since September 2023.
“Although February might prove to be a near-term outlier due to the 21-cent spike in diesel prices, the days of favorable market conditions for shippers are numbered. By the first quarter of 2025, we expect a steady but incremental tightening of the truck market to yield a modestly tougher environment for shippers. However, we do not see anything like 2021 or 2018 on the horizon,” says Avery Vise, FTR’s VP of trucking.
Key takeaways:
- In both months the culprit was the same: Diesel prices.
- The SCI declined to -1.4 from January’s reading of 3.4. Fuel costs aside, the SCI would have been positive in February, although other elements of shippers’ market conditions deteriorated slightly as well.
- The outlook remains for index readings close to neutral in 2024.
