October Shippers Condition Index Better Than Expected
The October Shippers Condition Index is at a neutral reading of 0.4. This is better than predicted but is thought to come right before the index begins an expected decline in 2017.
Regulations that constrict capacity and an increase in shipping rates as the economy strengthens are expected to cause the reading to dip. Shippers can expect a couple more months of neutral market conditions before an extended plunge in the metric that could last into 2019.
Any reading below zero reflects more difficult conditions for shippers.
With market activity for trucking beginning to improve, this trend should continue and will likely lead to higher rates for shippers beginning in late 2017.