Source: FTR
Fleetowner 5839 111215 Ftr Graph

FTR: Trucking Conditions Index falls in September

Nov. 12, 2015
Improvement expected in 2016

FTR’s Trucking Conditions Index (TCI) measure for September declined from the previous month to a reading of 8.46. The Trucking Conditions Index has been uneven through 2015 and is expected to decline further at year end.

The trucking environment remains in a fragile equilibrium between decent freight growth and lower, but still high, capacity utilization. Price growth in 2015 has been very modest, but a more positive TCI in 2016 will reflect expected rate increases later in the year.  

Details of the September TCI are found in the November issue of FTR’s Trucking Update, published Oct. 30. The ‘Notes by the Dashboard Light’ commentary in the current issue offers clues to the current heavy duty ordering activity. Along with the TCI and ‘Notes by the Dashboard Light,’ Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.

“Inventory destocking, sluggish trade, and weak manufacturing have created an environment much different than last year for truckers and transportation professionals,” said Jonathan Starks, director of transportation analysis. “While overall capacity is relatively tight, there is a dichotomy between what is seen in the contract potion versus the spot market. As supply has increased relative to demand, loads have moved back to the contract and dedicated markets that ran out of excess capacity in 2014 due to regulations and weather. The spot market, on the other hand, is showing definite weakness, with load activity weak, truck supply up significantly, and rates down from prior year. Contract rates continue to rise, although they have started to show some slowing. The market is relatively stable, with the major risk coming from a potential slowdown in freight demand due to the items mentioned earlier. If slow growth in the economy continues, the next significant change in market conditions isn’t expected until fleets start implementing the coming regulations. That is likely to occur in the second half of 2016.”

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...