FTR: trucking market eased slightly in September, but future looks good

Business conditions in the trucking market eased slightly in September due to soaring diesel fuel prices, but remained solidly positive in the overall view, according to transportation analyst firm FTR.

The Bloomington, Indiana-based firm said its Trucking Conditions Index (TCI) declined modestly in September to 8.13 from August’s 11.5 reading due to record fuel costs and a pause in the trend toward stronger freight rates. However, FTR’s revised forecast calls for more favorable conditions for carriers over at least the next three quarters than in the prior outlook.

“Multiple signs point to a truck freight market that probably will be considerably stronger over the next few quarters than we had previously forecast,” Avery Vise, FTR’s vice president of trucking, said in a release. “Slow employment growth in trucking despite strong freight rates suggests head winds for adding drivers, including various enforcement initiatives. An increase in our freight volume forecast puts further upward pressure on capacity utilization.”

The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index number, a positive score represents good, optimistic conditions. And conversely, a negative score represents bad, pessimistic conditions.

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