FTR Shippers Conditions Index for December came in at a deceptively positive reading of 1.0, up from -2.9 in November. A sharp drop in diesel prices during the month more than offset tightening capacity utilization. Aside from unpredictable swings in fuel costs, the outlook for shippers’ market conditions looks notably more negative. The freight market has deteriorated for shippers, and the outlook is consistently weak.
“We already were forecasting somewhat unfavorable market conditions for shippers, and that outlook is tougher still in our latest analysis,” Avery Vise, vice president of trucking at FTR, said. “Much of that deterioration is based on our expectations for stronger freight volume placing greater demand on freight capacity, but the road ahead is rocky for shippers even if our modestly stronger freight demand projections are too rosy. The excess capacity that had favored shippers for a couple of years or more is history, and stresses, even if brief, will cause hiccups that result in higher costs.”
