Freight Market Faces Mixed Outlook Amid Tonnage Index Trends

FTR and ATA data reports analyze the trucking market from different perspectives. FTR's Shippers Conditions Index indicates tightening capacity, while ATA's tonnage index reflects macroeconomic trends. Both reports reveal the opportunities and challenges facing the freight market. Specifically, the FTR index highlights the increasing pressure on shippers to secure capacity, potentially leading to higher rates. The ATA index, on the other hand, provides insights into the overall health of the economy and its impact on freight demand. Understanding these indicators is crucial for stakeholders in the trucking industry.
Freight Market Faces Mixed Outlook Amid Tonnage Index Trends

In the fast-paced world of B2B publishing, particularly for editors covering supply chain, logistics, and transportation sectors, having access to reliable industry metrics is crucial for producing high-quality, insightful content. Two indispensable tools have emerged as vital resources for understanding market dynamics: FTR's Shipper Conditions Index (SCI) and the American Trucking Associations' (ATA) Truck Tonnage Index.

FTR Shipper Conditions Index (SCI): Your Guide to Capacity Trends

Understanding the SCI

The FTR SCI is a comprehensive market indicator that evaluates multiple factors affecting shippers' transportation environment. Unlike single-dimension metrics, it provides a holistic view by analyzing capacity, rates, demand, and regulatory impacts.

Key Features:

  • Comprehensive analysis: Integrates multiple market factors into a single indicator
  • Predictive capability: Offers forward-looking insights beyond current conditions
  • Decision-making tool: Helps shippers, carriers, and investors formulate strategies

Interpreting SCI Values

The index uses zero as its baseline:

  • SCI > 0: Favorable conditions for shippers with ample capacity and lower rates
  • SCI < 0: Challenging environment with tight capacity and rising rates

Recent Market Observations

The June 2017 SCI showed modest improvement from -1.9 to -0.7, approaching neutral territory. This gradual recovery suggests:

  • Market conditions are stabilizing after previous challenges
  • Shippers still face some capacity constraints despite improvements

Future Outlook

FTR anticipates:

  • Moderate SCI levels through 2017 due to slow contract pricing growth
  • Potential capacity tightening in 2018
  • Ongoing regulatory impacts from ELD implementation

ATA Truck Tonnage Index: The Economic Barometer

Index Fundamentals

The ATA's monthly Truck Tonnage Index serves as a key economic indicator, reflecting the relationship between freight movement and broader economic activity.

Index Variations

ATA publishes two versions:

  • Seasonally Adjusted (SA): Removes seasonal variations for trend analysis
  • Not Seasonally Adjusted (NSA): Reflects actual tonnage movements

July 2017 Data Highlights

The SA index showed:

  • 0.1% increase from June's 4.4% decline
  • 2.3% year-over-year growth
  • 1.2% cumulative growth for the first seven months of 2017

Economic Context

ATA Chief Economist Bob Costello noted the modest growth aligns with mixed economic signals, including:

  • Retail sales growth
  • Declines in manufacturing output and housing starts

Comparative Analysis

While serving different purposes, both indices provide valuable perspectives:

  • SCI focuses on shipper-specific market conditions
  • ATA index reflects broader economic trends
  • Both consider regulatory and national factors

Practical Applications for B2B Editors

These metrics enable editors to:

  • Analyze market trends with authoritative data
  • Develop forward-looking industry perspectives
  • Create content with greater depth and relevance
  • Support reader decision-making with factual insights

Content Development Strategies

Effective approaches include:

  • Regular index tracking for trend identification
  • Comparative analysis between indices
  • Contextualizing data within broader industry developments
  • Connecting metrics to practical business implications