BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index for July declined to 12.4 – an historically strong reading – after the two most favorable months for carriers ever in May and June.
“While we still see truck freight market conditions as favorable for carriers during the two-year forecast horizon, the period of extraordinary improvement might be over,” said Avery Vise, FTR’s vice president of trucking. “The biggest wild cards remain whether pressure on foreign truck drivers and other enforcement efforts keep capacity growth in check and whether the buildout of data centers continues at its current pace into next year or beyond. If either of those situations prove to be the case – and certainly if both do – trucking conditions could remain robust.”
Less upward pressure on freight rates was the main factor in a modest deceleration in market conditions. Partial offsets were tighter capacity and lower financing costs.
“Diesel prices are another concern, of course, although for much of the market they are mostly a pass-along cost,” Vise said. “However, if spot rates were to soften while diesel prices are at a near-record level, trucking companies might find themselves with an ample supply of drivers who previously worked for failed small carriers. The result could be akin to the sharp increase in truckload employment in 2022 following Russia’s invasion of Ukraine.”
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.
Diesel prices is to expensive and companies might find themselves with a ample supply of drivers because of the market!