BLOOMINGTON, Ind. — While FTR’s Trucking Conditions Index for June eased to 17.1 from May’s record 20.4 reading, it continued to reflect a very favorable market for carriers.
“We expect the market to be favorable for carriers throughout our two-year forecast horizon, but the recovery appears to be stabilizing,” said Avery Vise, FTR’s vice president of trucking. “For example, spot rates in July softened as seasonally expected even though fuel prices rose sharply – quite a different dynamic than what occurred in March. Even if spot rates have peaked, contract rates likely will continue to rise well into 2027.”
Carrier Outlook Slightly Stronger
Slightly less robust freight rate growth was partially offset by lower diesel prices in June to produce overall market conditions that were not quite as positive as those in May. However, the outlook for carriers is a bit stronger than it was in the prior forecast.
“To this point, the truck freight market’s strength is principally due to supply-side constraints – especially for dry van and refrigerated operations,” Vise said. “An encouraging signal is the ongoing recovery in manufacturing demand, and consumer spending has been solid. Data center construction clearly has boosted flatbed especially. Concerns include slowing U.S. job growth, a persistently weak housing sector, and stubborn price inflation for both consumers and businesses. Although freight demand still doesn’t look that strong, we see little sign that trucking capacity will rise substantially in the near term.”
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.
