BLOOMINGTON, Ind. — Transportation analyst firm FTR’s Trucking Conditions Index (TCI) for August increased from July to a reading of 6.76, the company reported October 26.
FTR expects the increase to continue through 2017, due to new regulations tightening capacity in the industry “resulting in better pricing and margins for trucking companies,” FTR stated. “This improvement is largely from the supply side, as currently the economy and freight markets are in a slow growth phase with unclear direction typical of a late recovery environment.” FTR expects a peak in early 2018, the company reported.
Jonathan Starks, chief operating officer at FTR, said “The July and August increases in the Trucking Conditions Index were led by positive changes in capacity utilization and fuel prices. Fuel prices look to have stabilized during the fall and are unlikely to have a big impact on transportation markets until oil prices move substantially away from $50 per barrel. Also, despite the weak reports from the public truckload carriers, utilization of the overall fleet is showing some moderate improvement. This trend is likely to be subdued until mid-2017 when we get close to the implementation data for electronic logging devices. The third quarter is likely to be the nadir for weak reports, and we should begin to see economic improvement, easier year-over-year comparisons, and better overall market conditions as capacity tightens up due to regulations. Spot market conditions are beginning to affirm this, with the dry van market on Truckstop.com showing positive year-over-year comparisons for both load volumes and rates.”
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