BLOOMINGTON, Ind. — Trucking conditions in the US improved in June, according to the latest Trucking Conditions Index published by FTR.
The reading of 7.64 indicates carriers are gaining market power but rates are struggling to keep up with cost inflation. The index was up 1.9 points from May.
“The headline number of 4% for GDP growth in the second quarter is getting plenty of news but the real number for getting a sense of true demand in this economy is the Final Sales component of GDP,” said Jonathan Starks, director of transportation analysis with FTR. “It stood at 2.3% in Q2, well above the -1% seen in Q1 but noticeably below the 3.5% it averaged during the second half of 2013. Truck freight continues to show steady increases and the capacity situation is unlikely to loosen up any time soon. These good developments are partially offset by slower than expected growth in contract rates. Spot market rates are still elevated, although they have shown normal moderation during the summer months. We expect to see both spot and contract rates continue to rise as we get into the fall shipping season.”