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Rail News: Rail Industry Trends
1/19/2011
Rail News: Rail Industry Trends
Freight growth on tap for 2011, FTR Associates says
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FTR Associates reported earlier this month that its Shippers Condition Index (SCI) hovered near a neutral reading of zero near the end of 2010, reflecting the effects of an earlier pause in the economic recovery.
The SCI summarizes market influences that affect shippers; a reading above zero suggests a favorable shipping environment, while a reading below zero suggests an unfavorable environment.
The Nashville, Tenn., transportation forecasting firm projects that the SCI "will soon significantly worsen due to tightening carrier capacity as the economy re-accelerates and new federal trucking regulations take hold," FTR officials said in a prepared statement.
In addition, the firm projects improving freight growth will increase rail and intermodal rates through 2011 and 2012.
The SCI summarizes market influences that affect shippers; a reading above zero suggests a favorable shipping environment, while a reading below zero suggests an unfavorable environment.
The Nashville, Tenn., transportation forecasting firm projects that the SCI "will soon significantly worsen due to tightening carrier capacity as the economy re-accelerates and new federal trucking regulations take hold," FTR officials said in a prepared statement.
In addition, the firm projects improving freight growth will increase rail and intermodal rates through 2011 and 2012.