We get mixed signals from this week’s economic reports. Trucking conditions softened slightly in June, according to FTR, due to high financing costs and a slower retreat in diesel prices.

But Loadlink has reported that Canada’s spot market was strong in July, pointing to a freight recovery. The U.S. spot market slid in the most recent week, with rates pulling back as per normal this time of year.

Trucking conditions softened in June

FTR’s Trucking Conditions Index (TCI) slid from 2.24 in May to 0.95 in June, even though core freight dynamics improved in June.

However, higher financing costs and the slowing of diesel price decreases offset improving freight conditions, FTR reported. It is projecting a general improvement in market conditions for carriers, but there could be both positive and negative readings to come in future months.

FTR thinks the index will turn consistently positive by the end of this year.

“Today’s market might feel as weak as it has been, but we continue to see a growing foundation for a recovery in financial conditions for trucking companies,” said Avery Vise, FTR’s vice-president, trucking.  

“Strengthening capacity utilization sets the stage for firmer freight rates starting late this year and accelerating somewhat in 2025. Although nothing approaching the likes of 2021 is on the horizon, carriers should be seeing considerably more favorable conditions by next spring.”

Canada’s spot market has a strong July

Loadlink Technologies has reported what was a strong July for the Canadian spot market, despite a seasonal decline in load volumes. “Overall freight volumes were significantly higher compared to the previous year,” the company said, “while the month-over-month decline from June narrowed.”

Freight volumes were up 12% compared to last July, while in recent years they tended to slide more than 20% due to seasonal summer holidays and economic conditions. July load volumes were 8% off June numbers, but Loadlink attributes that to holidays in Canada and the U.S.

Adjusting for the holidays, daily average load volumes were up compared to June. The stronger performance is led by cross-border loads, accounting for 62% of all freight movements.

The truck-to-load ratio increased to 4.06 in July, but is down from June and a healthy improvement of 12% year over year, which Loadlink says indicates “signs of better market conditions for carriers.”

“While there was a seasonal pullback in loads, the industry maintained strong year-over-year growth and an impressive daily average increase in load volumes,” Loadlink said in a release. “Recent interest rate cuts may continue to support economic growth and increases in demand for freight services, all positive signs for the Canadian freight market.”

U.S. spot rates weakened last week

South of the border, Truckstop and FTR reported spot rates weakened as expected for the week ended Aug. 9. However, rates were at levels closely matching the same period last year.

Refrigerated rates were up slightly while dry van and flatbed rates pulled back from the previous week, which is normal for this time of year. Dry van rates slipped below prior-year levels for only the second time in nine weeks, the companies revealed.

Load postings fell more than truck postings, dragging the Market Demand Index down to 57.2, its lowest mark in five weeks.