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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.

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.

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