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FTR’s Trucking Conditions Index for March fell more than five points from the previous month’s record high. But it remains indicative of a favorable environment for carriers.
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Although the April 1 start to “hard enforcement” of the electronic logging device mandate does not seem to have had a huge effect on trucking capacity (except perhaps in flatbeds), there are a number of other factors that are working to keep capacity tight and rates high, likely at least until late this year, according to FTR.
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Trailer orders topped 30,000 in March, besting an earlier estimate of 29,500 orders, showing that fleets are still investing in new equipment, according to ACT Research.
Read More →FTR’s Trucking Conditions Index for February hit its highest reading ever, reflecting an unmatched positive environment for carriers.
Read More →Early reports from FTR on trailer order activity for March show that while orders declined by 16% from the month before, they remain historically strong.
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The number of loads on the spot truckload freight market jumped 3.6% during the week ending March 24 while truck capacity increased 1.3%, according to DAT Solutions.
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When you look back just four years ago to 2014, a lot of heavy-trucks were sold. Freight demand had suddenly increased, and everyone was trying to move more cargo. But when 2015 rolled around, things weren’t as rosy.
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There is increasing evidence that the supply of trucks available to move freight is outpacing demand, based on a flurry of recently released reports – but it’s also helping push freight rates higher. What's behind the capacity crunch?
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Trailer orders in the U.S. are expected to hit an all-time high of 47,000 units for December 2017, pushed by tightening capacity that FTR attributes to the ELD mandate.
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Truckload capacity will remain tight and rates high, but both may moderate somewhat as market forces come into play, according to FTR analysts. The ELD mandate is still a wild card, with the economy and tax reform playing a part as well.
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