The Shippers Conditions Index (SCI)) continued to tumble in March falling to -23.1, the most negative reading ever for the index. This followed what had been the record low in February of -17.9. The sharp decline was expected due to the record surge in diesel prices coupled with tighter capacity utilization. The near-term outlook is highly negative even before factoring in a new surge in diesel prices occurring in early May.
VP of Rail & Intermodal
Todd Tranausky commented, “Fuel costs, labor costs, and ongoing congestion across the supply chain are going to keep the pressure high on shippers as we move into the summer months. There is little relief in sight, though there is the potential for downside economic pressure to reduce demand in the second half. But that is far from certain and also not the ideal way for shippers to experience better conditions and more capacity in their supply chains.”