Trucking Conditions Index Reflects Tightening Capacity

November 22, 2016

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Source: FTR
Source: FTR

FTR's September Trucking Conditions Index shows a reading of 5.47, down somewhat from August’s reading.

Despite the downward move, FTR said that an overall positive trend in the index reflects a "modest" tightening in capacity, related to regulations set to take effect in 2017.

Tightening capacity should improve pricing and margins for carriers through the end of next year, FTR expects. The TCI is projected to reach its peak in late 2017 or early 2018.

“The presidential election results have created some uncertainty in the market, mainly due to the lack of political and legislative experience from President-elect Trump,” said Jonathan Starks, chief operating officer of FTR. “There are certainly several areas where the new administration could make an impact on the marketplace - with regulations being the chief area of presidential power in that regard.”

FTR also has examined the effect of the election results on trucking conditions.

“We will learn more in the upcoming weeks and months as the administration’s team is finalized and the legislative and regulatory agenda is cemented,” said Starks. “I wouldn’t look for any significant impacts to the U.S. economy until relatively late in 2017. The U.S. economy should continue to grow - and trucking will grow slowly with it.”

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