FTR’s Shippers Conditions Index (SCI) fell in March due to the inability to regain employees lost during the COVID-19 pandemic. The SCI fell to -17.8, its lowest reading on record, and was more than five points lower than February, reflecting an across-the-board month-over-month decline.
“While May and June are expected to be the worst months for shippers as rate increases in truck and rail hit their peak for the year, it is possible that the tight conditions could persist for longer,” Todd Tranausky, vice president of rail and intermodal at FTR, commented.
According to FTR, conditions are forecasted to improve in the coming months, but the SCI will remain negative into 2022.
“Capacity is expected to remain a constraining factor for transportation through the end of 2021 as truck and rail each struggle to regain employees lost during the pandemic,” Tranausky added. “Strong consumer and industrial demand means freight volumes will remain strong at the same time, setting up a challenged market for shippers over the next few months.”
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