BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index in May jumped to 20.4 – its strongest level ever due mostly to highly favorable freight rates for carriers.
“A record high for the TCI obviously is notable, but it is also a good occasion for us to acknowledge the obvious: Robust market conditions have developed recently and rapidly after several years of tough going for most of the trucking industry,” said Avery Vise, FTR’s vice president of trucking. “Many carriers have a long way to go to repair their finances and return to consistent and acceptable margins.”
The April index reading had been 11.6. Prior to May, the most favorable TCI reading for carriers had been 16.8 in February 2021. FTR expects the index to settle in the coming months but to remain solidly positive.
“Also, except for a few pockets of freight strength due largely to massive investment in artificial intelligence, the sharp recovery in freight rates is principally a function of already-tight capacity followed by a series of disruptions, including pressure on foreign drivers and, more recently, the need for fuel cost recovery,” Vise said. “Broad-based volume growth remains elusive, and the market rebound likely will hit a ceiling soon unless freight demand strengthens considerably.”
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.
