BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index in August slipped from July’s 12.4 reading to a still robust 11.5 as the run-up in freight rates basically stabilized.
“Although fuel costs have moderated somewhat since then, the surge in diesel prices to successive record highs in September has introduced a wild card into the truck freight market,” said Avery Vise, FTR’s vice president of trucking. “As we noted last month and explored in more detail in our October report, if fuel costs were to force out many small carriers, the shift of drivers to larger carriers could relieve some of the tightness in trucking capacity. While spot rates remain quite robust, cash flow has become more critical. High diesel prices alone would have only a modest impact on overall market conditions, but they might trigger other changes that could be more meaningful.”
According to FTR, rates remained by far the largest positive for the TCI, but they were only slightly stronger than they had been in July. Fuel costs were a mild drag on financial conditions while capacity utilization and financing costs remained favorable for carriers. Despite record high diesel prices in September, the index is expected to remain solidly positive through the two-year forecast horizon.
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.
