The Shippers Conditions Index (SCI)fell back in May to a -6.2 reading. After relatively stable diesel prices in April, large increases in May coupled with tighter capacity utilization led to tougher market conditions despite some rate relief.
The outlook for the SCI is for little change as utilization and rates are expected to remain mildly unfavorable for shippers. Occasional positive readings are possible depending on changes in fuel costs and market dynamics.
VP of Rail & Intermodal
Todd Tranausky commented, “There is a lot of uncertainty in the weeks and months ahead as congestion remains a front burner issue for anyone moving freight through the port and rail supply chain. There is no easy solution to the congestion woes facing the ports and rail carriers, and it is unlikely to improve meaningfully before the peak season ramps up.”