Capacity continues to tighten for trucking according to FTR Associates’ Trucking Condition Index.
The Index rose to 7.1 in December, as reported in the February Trucking Update. This is the highest level recorded during the current recovery. The Index is a compilation of factors affecting trucking companies and helps measure capacity.
The current readings combined with the forecast for increased vehicle utilization and solid pricing power bodes well for carriers, FTR said.
“We have been forecasting steady improvements for the trucking sector,” said Eric Starks, president of FTR. “Conservative fleet attitudes towards adding drivers and equipment combined with the continuing growth of freight means that trucking companies should see their equipment utilization nearing 100% later this year. As a result, carriers will have greater latitude to both raise rates and to be more selective with regard to freight. Despite the impact from regulatory drag being moved further out, improving economic conditions will help make 2011 a good year for trucking companies.”
Published monthly, The Trucking Update is part of FTR’s Freight Focus Series and reports data that directly impacts the activity and profitability of truck fleets. As part of the Trucking Update, FTR forecasts expected trends in this data and the probable short and long term consequences. For more information, send an email to [email protected] or call Helen Lile at 1-888-988-1699, Ext. 1.