It's Not Recovery (But It's Not Bad)

Sept. 13, 2016

With the new capacity-constraining regulations not yet in effect, shippers should enjoy the relative calm shipping conditions while they can.

Dave Blanchard

The Shippers Conditions Index (SCI), a measurement compiled by transportation analyst firm FTR that indicates the favorability (or otherwise) of current transportation conditions, came in at -0.7 for the month of June. Any reading below zero indicates a less-than-ideal environment for shippers, so a negative score normally isn’t something to get too excited about.

According to FTR, though, a score that’s almost at a neutral reading “is sure to feel favorable to shippers in comparison to the many difficulties experience last year” (see chart below). For that matter, -0.7 is more than 2.0 full points higher than the -2.8 score from the previous month. As FTR’s analysis indicates, June’s score reflects slow freight growth typical of late recovery status and a lull in the new capacity-constraining regulations that are not in effect as of yet.

Material Handling & Logistics is an IndustryWeek companion site within Penton's Manufacturing & Supply Chain Group.

About the Author

Dave Blanchard | Senior Director of Content

Focus: Supply Chain

Call: (941) 208-4370

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During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.