According to the FTR Associates Trucking Conditions Index, the industry remains in negative territory. The May index showed a drop fin performance for the first time after three consecutive increasing quarters.
The current reading of -22 reflects the “continued over-capacity in the trucking industry,” FTR said. “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,” he continued. “This will not occur for some months yet and when it does, it will be a slow climb.”
The index is contained within the June issue of The Trucker’s Dashboard, a monthly report with in-depth analysis including freight forecasts, fleet utilization, trucking costs and pricing.