BLOOMINGTON, Ind. — Transportation analyst firm FTRs Trucking Conditions Index (TCI) posted a reading of 5.47, a small drop from August, FTR reported today. However, the TCI shows an overall positive trend, having increased from less than 2.00 in May. The trend, FTR stated, “reflects the modest tightening in capacity as additional regulations take effect in 2017.”
The drag on capacity of the regulations should improve pricing and margins for carriers through the end of next year, according to FTR, causing the Index to peak in late 2017 or early 2018.
“The presidential election results have created some uncertainty in the market, mainly due to the lack of political and legislative experience from President-elect Trump,” said Jonathan Starks, chief operating officer at FTR. “There are certainly several areas where the new administration could make an impact on the marketplace - with regulations being the chief area of presidential power in that regard. We will learn more in the upcoming weeks and months as the administration’s team is finalized and the legislative and regulatory agenda is cemented. I wouldn’t look for any significant impacts to the U.S. economy until relatively late in 2017. The U.S. economy should continue to grow - and trucking will grow slowly with it.”
TCI readings above zero indicate a positive environment for trucking, while readings below zero indicate the opposite. Readings below -10.00 can mean a critical situation for trucking, FTR has stated.
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