FTR reports jump in July trucking conditions

According to FTR Associates’s Trucking Conditions Index (TCI), July showed a 30% improvement over June’s reading, reflecting a forward look at an expected pricing uptick for truckers this fall amid tightening capacity.

The July TCI was 8.41. Any reading above zero indicates a generally positive environment for truckers. Readings above 10 would signal that volumes, prices, and margins are likely to be in a solidly favorable range for trucking companies. The details of the July TCI Index are found in the September issue of the Trucking Update.

“There still remains very little hard evidence of the impacts from the recent introduction of new hours-of-service rules on July 1, but anecdotal accounts and very early data are starting to show some potential impacts,” said Jonathan Starks, director of transportation analysis. “Unfortunately, freight demand has remained lackluster with very little movement up or down outside of normal seasonal activity. There is potential for a decent fall peak shipping season as the ISM manufacturing index is strong and inventories remain relatively lean, but the continued slog of the overall economy makes it unlikely that we get the significant push in consumer activity that is needed to really start moving the needle on capacity constraints and upward rate activity. Should any decent economic growth occur it should quickly show up in truck activity and tighten a market that has very little spare capacity. The potential for an extremely tight truck market remains but is dependent on those external factors.”