NASHVILLE, Ind. -- Trucking conditions continued their downward trend in June, declining a half point from May to a reading of 4.5, according to FTR’s Trucking Conditions Index.
The results were weaker than initial expectations, FTR said. “The current economy continues to increase modestly, supporting 3% tonnage growth,” FTR said in a release. “However, this is not enough to sustain a stronger pricing position for carriers during the summer shipping season.”
The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates a positive environment for truckers with readings above 10 a sign that volumes, prices and margin are in a solidly favourable range for trucking companies.
“We expect the index to further weaken slightly during the summer months, but to remain in positive territory,” said Jonathan Starks, director of transportation analysis for FTR.
“Improvement will resume as we head into the fall peak, as traffic builds and the delayed introduction of new federal regulations begin to restrict capacity. This trend will continue into 2013, culminating with the introduction of new Hours-of-Service rules by the [Federal Motor Carrier Safety Administration] in July of next year. Given our expectations of a rising driver shortage, combined with a tailwind versus year-ago fuel prices and continued modest freight growth, the index should steadily increase into 2013.”