BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index for February rose nearly a full point month over month to a 10.2 reading – the highest level in four years – due to a further strengthening in freight rates.
“Extreme volatility in fuel prices – especially with the just-announced ceasefire in the Middle East – and uncertainty over how the spot market will respond to falling diesel prices make the near-term truck freight market far more difficult to forecast than the longer-term outlook, which remains solidly favorable for carriers,” said Avery Vise, FTR’s vice president of trucking.
March Expected to be an Outlier
The record surge in diesel prices in March obviously was a huge short-term hit for carriers and could result in a negative TCI reading, although the preliminary assessment still shows a marginally positive reading due to strong freight rates and capacity utilization. Either way, the March TCI will be an outlier.
“The freight market’s response this year to weather and diesel prices confirms how much capacity has tightened,” Vise said. “As we explored in our latest update for clients, the real question is whether freight volume will support an acceleration of freight rates or whether carriers will merely hold recent gains.”
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.
