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While FTR’s Trucking Conditions Index showed substantial improvement in January, the index remains in the negative.
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Sharp increases in fuel and financing costs coupled with an unfavorable trend in freight rates resulted in a major deterioration of financial conditions for trucking companies during October, FTR reports.
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“Trucking companies that managed their businesses well during the good times should remain healthy and outperform those that had relied on a robust market to remain afloat,” FTR officials predict.
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Fuel and financing costs and freight rates caused a decline in the trucking market in June.
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Sharp increases in diesel prices during May offset slightly improved freight market conditions for carriers.
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FTR’s Trucking Conditions Index is forecast to recover to positive territory in April and beyond, but signals of potentially weaker demand and rates than currently forecast could temper that outlook.
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A record surge in fuel costs in the wake of Russia’s invasion of Ukraine will hit trucking conditions in the near term. For now, FTR’s Trucking Conditions Index outlook remains positive, but the downside risks have increased greatly.
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FTR expects conditions to remain positive for carriers through 2022 with gradual easing, but swings in fuel prices could maintain volatility.
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FTR’s Trucking Conditions Index for November 2021 rebounded from October due to steadier diesel prices, and firmer freight volumes and rates.
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Freight rates continued to strengthen in September, but freight volume and capacity utilization numbers were weaker, according to FTR’s Trucking Conditions Index.
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