Freight shipping may have slowed to a crawl, but shippers are not benefiting from additional truck capacity or lower truck pricing, according to FTR Associates.
The firm’s Shippers Conditions Index dropped to a negative 6.8 in September, and FTR doesn't expect it to head back toward positive territory anytime soon.
Shipping costs will rise and capacity will tighten in 2013 as economic conditions improve and new federal regulations affecting trucking are implemented, FTR said.
“Freight markets are currently mired in a sluggish but stable state,” FTR Senior Consultant Larry Gross said. “Disciplined carriers are holding back on capacity.”
Any negative reading for the Shippers Conditions Index indicates higher pricing and tighter capacity for shippers. Positive readings signal lower transportation costs.