BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index for October fell to a reading of 3.17, more than a point lower than September, which had seen a significant dip from August when the TCI measure was in plus double digits.
Stabilizing truckload rates and a short-lived run up in diesel prices were largely responsible for a continued deterioration in trucking conditions during October, FTR said, adding that in spite of the fact that the October reading was the lowest since August 2017, FTR’s outlook for trucking conditions look stronger in the near term with the TCI rebounding to a better level for months to come.
Details of the October TCI are found in the December issue of FTR’s Trucking Update, published November 30. The ‘Notes by the Dashboard Light’ section in the current issue discuss the likely return to stability in the trucking market in 2019 after a significant period of extraordinary strength.
Along with the TCI and ‘Notes by the Dashboard Light,’ the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.
“October’s conditions index confirms the general sense that the current cycle has peaked,” said Avery Vise, vice president of trucking. “Although we anticipate improved conditions for the remainder of 2018 and much of 2019 compared to October, we appear to be headed gradually toward neutral territory.”
The Trucking Conditions Index tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index that tracks the market conditions that influence fleet behavior. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem, while readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment, and double-digit readings (both up or down) are warning signs for significant operating changes.
FTR’s analysts collect and analyze all data likely to impact freight movement, issuing consistently reliable reports for trucking, rail, and intermodal transportation, as well as providing demand analysis for commercial vehicle and railcar. FTR’s forecasting and specially designed reports have resulted in advanced planning and cost-savings for companies throughout the transportation sector.
For more information about the work of FTR, visit www.FTRintel.com. 8
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