Diesel Prices Put Shippers Conditions in Negative Territory

FTR’s January Shippers Conditions Index (SCI) fell into negative territory in February for the first time since September 2023.

“Although February might prove to be a near-term outlier due to the 21-cent spike in diesel prices, the days of favorable market conditions for shippers are numbered. By the first quarter of 2025, we expect a steady but incremental tightening of the truck market to yield a modestly tougher environment for shippers. However, we do not see anything like 2021 or 2018 on the horizon,” says Avery Vise, FTR’s VP of trucking.

Key takeaways:

• In both months the culprit was the same: Diesel prices.
• The SCI declined to -1.4 from January’s reading of 3.4. Fuel costs aside, the SCI would have been positive in February, although other elements of shippers’ market conditions deteriorated slightly as well.
• The outlook remains for index readings close to neutral in 2024.