FTR’s Trucking Conditions Index fell in November from the previous month’s record high, but the November reading of 10.26 is still strong, as rising freight rates continue to power robust trucking conditions.
The transportation analysis and forecasting firm expects the index to settle into single-digit positive readings through 2021, reflecting a healthy but more stable truck freight market.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index indicating the industry’s overall health.
“Market conditions for trucking companies remain quite strong, and they should be for months to come,” said Avery Vise, FTR’s vice president of trucking, in a news release. “Economic indicators still point to strength in freight demand, and total spot volume is holding at record levels. Although consumer spending has stabilized, the industrial sector is beginning to build some momentum.
“Also, the latest help from Washington at a minimum should keep consumer spending from falling in the near term. Meanwhile, constraints on the driver supply related to the pandemic – fewer new drivers trained and significantly reduced U.S. labor participation – likely will keep capacity tight through most of the year at least.”
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