Fuel and financing costs and freight rates caused a decline in the trucking market in June.
Sharp increases in diesel prices during May offset slightly improved freight market conditions for carriers.
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.
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.
FTR expects conditions to remain positive for carriers through 2022 with gradual easing, but swings in fuel prices could maintain volatility.
FTR’s Trucking Conditions Index for November 2021 rebounded from October due to steadier diesel prices, and firmer freight volumes and rates.
Freight rates continued to strengthen in September, but freight volume and capacity utilization numbers were weaker, according to FTR’s Trucking Conditions Index.
While market conditions for carriers might have peaked, they remain strong and are forecast to remain in the double-digit positive range for the rest of the year, FTR reports.
Stronger freight rates would have pushed FTR’s Trucking Conditions Index to a third straight record, but those gains were offset by a swing in diesel prices. Still, conditions were robust.
Although most market factors were not quite as strong in April as they were in March, a reversal of March’s higher diesel prices improved overall trucking conditions.
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