NASHVILLE, Ind. -- Trucking conditions in the US dropped significantly in May, according to the latest FTR Trucking Conditions Index.
The index dropped nearly four points to a reading of 5.1, its lowest level in six months. The FTR Trucking Conditions Index is a compilation of metrics that affect the overall health of the US trucking industry.
FTR says the weak reading in May is reflective of soft pricing results for the first quarter and a moderate driver shortage. Any reading above zero indicates a positive environment for truckers. A reading above 10 indicates volumes, prices and margin are solidly in favour of trucking companies.
“The weakening recovery is making itself felt in lackluster growth in truck freight demand,” said Larry Gross, senior consultant for FTR. “Although carriers have been very disciplined thus far during the recovery, choosing not to add capacity, the lack of freight volume growth is constraining the industry’s ability to raise rates. We still expect industry conditions to slowly improve from here as we progress into the second half of the year.”