BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index (TCI) for July improved marginally to a reading of -1.03 from June’s -1.83.
“We do not see the market any stronger for carriers soon in the areas that matter most to them – freight rates and volume – but a recent preliminary revision of trucking employment estimates suggests tighter capacity than previously indicated,” said Avery Vise, FTR’s vice president of trucking. “Meanwhile, other potential capacity stresses loom, including rising truck insurance costs and pressure on foreign drivers. Although our utilization forecast is still basically flat, the prospects have risen for improved freight volume to strengthen the truck freight market noticeably.”
Freight-Related Factors Weaker than June
The improvement comes though all freight-related factors were weaker than they were the month before. Offsetting that deterioration was a considerable slowing of diesel price increases after a big jump in June. Trucking is still in the doldrums, but the outlook is somewhat more favorable for carriers.
Details of the July TCI are found in the September issue of FTR’s Trucking Update, published Aug. 29. The September issue also revisits the potential for English language proficiency (ELP) and related issues to affect capacity in the wake of an August crash in Florida that has ratcheted up scrutiny. The Trucking Update includes data and analysis on load volumes, the capacity environment, rates and the economy.
The TCI tracks the changes representing five major conditions in the U.S. truck market.
These conditions include:
- Freight volumes.
- Freight rates.
- Fleet capacity.
- Fuel prices.
- Financing costs.
The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings in either direction suggest significant operating changes are likely.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
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