DAILY NEWS Dec 12, 2012 3:20 PM - 0 comments

Trucking conditions cool off in October: FTR Trucking Conditions Index

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NASHVILLE, Ind. -- Trucking conditions eased off in October, falling to a reading of 7.9 following September’s 65% increase over August index numbers to a level of 9.6, according to FTR’s Trucking Conditions Index.

FTR forecasts a continued rise in the Trucking Conditions Index until it reaches double-digit readings in late spring. “The market will be responding to tightening conditions in 2013 with increased capacity utilization caused by solid freight growth and the new Hours-of-Service (HoS) rules now scheduled to take effect in June,” FTR said in a release.

The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates a positive environment for truckers. Readings above 10 signal that volumes, prices, and margins are likely to be in a solidly favourable range for trucking companies.

“The big driver affecting the Truckers Conditions Index is a sharp increase in capacity utilization. Regulations adversely affecting trucking’s capacity to haul, especially the new HoS rule in the pipeline for implementation, will cause an ever-tightening condition,” said Jonathan Starks, director of transportation analysis for FTR.

“When we add in the expectation of further freight growth we can see a possible crisis unfolding in late 2013 where there simply are not enough available hauling hours to meet shipping demands. These conditions put the carrier in the driver’s seat, allowing the trucker to choose what freight to haul and at what cost. Margins may not be as positively impacted if the driver shortage leads to stronger increases in driver pay.”

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