TopNews

Trucking Conditions Index Continues Positive Trend Ahead of Expected Late Year Decline

November 7, 2013

SHARING TOOLS        | Print Subscribe

FTR's Trucking Conditions Index reading of 9.97 in September continues to show a positive environment for trucking. The index is expected to peak in October after which the full impact of the newly enacted hours-of-service rules negatively affect trucking.

Possibly mitigating the capacity constraints imposed by HOS, but equally detrimental, is the potential for freight growth to slow in 2014 as a result of uncertainty imposed on the economy from the government shutdown and the ongoing debate about the federal budget.  
 
The TCI is designed to summarize a full collection of industry metrics, with a reading above zero indicating a generally positive environment for truckers. Readings above 10 would signal that volumes, prices, and margins are likely to be in a solidly favorable range for trucking companies.
 
Jonathan Starks, director of transportation analysis for FTR, commented: "Pricing acceleration has started to show up in the data but it is easily hidden from view because the year-to-year comparison remains weak. This weakness is due to the falling rates that we had during the first half of the year.

"Month-to-month rates started moving higher in July and August which we fully expect to continue during the fall shipping season. Stronger growth, and significant year-over-year growth, are likely to hold off until the spring shipping season. By that time fleets will have been dealing with enough capacity and driver issues to begin moving contract rates higher. Spot rates have already shown some of these signs."
 

ADVERTISEMENT

Comment On This Story

Name:  
Email:  
Comment: (Maximum 2000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

Newsletter

We offer e-newsletters that deliver targeted news and information for the entire fleet industry.



GotQuestions?

LUBRICANTS

The expert, Mark Betner from Citgo will answer your questions
Ask a question

Sponsored by


WHEEL ENDS SOLUTIONS

Wheel end expert Jeff Geist from STEMCO will answer your questions
Ask a question

Sponsored by

Magazine