Despite FTR Intel’s Trucking Conditions Index for July falling to 2.84 — down from June's 11.35 reading — trucking conditions remain favorable for carriers as the economic recovery continues this summer. Carriers took advantage of stronger freight rates while the freight demand and capacity utilization that set the stage for those rates settled somewhat during the month. FTR expects the TCI to stay in positive territory through the balance of the year and into 2021.

“The rebound we saw in June took a bit of a breather in July, but the surge yielded higher spot rates,” said Avery Vise, vice president of trucking at FTR. “Spot volumes and rates were stronger in August, and imbalance is at record levels.”

Details of the July TCI are found in the September issue of FTR’s Trucking Update, published August 31. Additional commentary analyzes the risks to the freight market from inventories-to-sales ratio disparities in the supply chain resulting from the COVID-19 pandemic. Beyond the TCI and the commentary, the Trucking Update includes data and analysis on load volumes, the capacity environment, and rates. FTR also publishes ongoing publicly available analysis on the impact of COVID-19 on freight transportation at FTR’s COVID-19 intelligence.

“The near-term outlook remains favorable for carriers, but we could see some stabilization soon,” added Vise. “Record low retail inventories relative to sales likely are a big driver of freight demand, and August employment data showed the first real signs that significant capacity is returning.”