Continued over-capacity in the trucking industry impacted the FTR Trucking Conditions Index in May, which slid two points

to -22. This is the first decline in the index since the beginning of the year.

The index was published in the June edition of FTR's The Trucker's Dashboard, which combines five trucking industry statistics into one metric measuring the overall health of the trucking industry. Since the beginning of the year, the index had been on the rise from a two-year low of -35, as the industry slowly began to bounce back from the fourth quarter of 2008.

"The improvement in the Trucking Conditions Index, prior to June, was a function of reductions in the interest rates that truckers are paying, as well as the general expectation that freight will stop falling later this year," said Noel Perry, senior consultant and managing director of FTR Consulting Group. "Further improvement in the Index will require that freight volumes actually stop contracting and rates begin to improve. This will not occur for some months yet and when it does, it will be a slow climb."

The Trucker's Dashboard is a monthly report for motor carriers featuring in-depth analysis of the trucking industry, including forecasts for freight, fleet utilization, trucking costs and pricing.

More info: www.ftrassociates.com.