The FTR Trucking Conditions Index for June came in “basically unchanged” from May at a reading of 11.18, which the research group said reflects that trucking capacity “remains very tight.”
FTR noted that conditions for truckers are at their most favorable during this period and through July with the capacity crunch at its peak.
But in the second half of the year, the firm expects there will be “some stabilization due to added capacity and productivity enhancements in the segment; however, trucking conditions will remain very strong over the next year or more,” with TCI levels through the period above 2017 readings.”
“Conditions likely are approaching their most favorable for carriers in the current cycle, as additional drivers and trucks as well as ongoing supply chain adjustments to tight capacity and electronic logging devices should bring modest stabilization,” said Avery Vise, FTR’s vice president of trucking.
“However,” he continued, “given strong manufacturing and construction activity, stimulus from government spending and tax cuts, and a very tight labor market, trucking conditions for the next year should remain stronger than at any point from 2015 through 2017.”
Details of the June TCI are found in the August issue of FTR’s Trucking Update, which was published on July 28. FTR added that the “Notes by the Dashboard Light” section in the current issue discusses how a tight labor market could stifle growth because businesses cannot fill positions that are needed. Trucking Update also includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.
Related: Is the Capacity Crunch Slowing?