BLOOMINGTON, Ind. – FTR’s Trucking Conditions Index swung from a record low reading of -28.66 in April, to its strongest reading in a decade in June at 11.35.
But the industry analyst warned it’s unclear how long the positive factors affecting the June reading – a combination of higher utilization and strong growth in freight demand and rates – will remain.
“The reversal of fortune in trucking has been staggering but fairly simple to understand. Freight demand came roaring back in June after the contraction in March and April, but capacity has barely moved,” explained FTR’s vice-president of trucking, Avery Vise.
“We remain concerned that Washington’s financial support subsidized the economic rebound significantly and that continued strong support might be necessary until a vaccine is widely available. However, even putting that issue aside, we anticipate some stabilization as an inventory rebuild probably accounts for some of the recent demand growth. Also, we see some indications that carriers are beginning to restore driver capacity, at least modestly.”
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