Indicators: Conditions for shippers tumble to all-time low
Market conditions for shippers, according to FTR’s monthly Shippers
Conditions Index, skidded to an all-time low in April, FTR said last
week, due to the industry’s capacity crunch and sky-high rates.
says FTR, conditions for shippers have likely bottomed out. Shippers
could see some relief in 2019, as fleets begin taking hold of truck
orders placed in recent months. “Shippers facing significant increases
in rates for truck and rail intermodal movements have not yet seen
relief. However, record truck orders should begin hitting the market in
the second half of the year, and we are closely watching the driver
situation, which will determine if shippers see improvements as the
trucks become available,” says Todd Tranausky, a senior transportation
analyst for FTR.
Shippers will continue dealing with record-high
rates, though, at least into 2019, says FTR. Rates are forecasted to
climb 12 percent year over year in 2018 compared to 2017, and another 5
percent in 2019.
FTR’s Shippers Conditions Index usually mirrors
the group’s Trucking Conditions Index, meaning poorer conditions for
shippers often translate to strong conditions for carriers.
Original article provided by: https://www.ccjdigital.com/conditions-for-shippers-tumble-to-all-time-low/