Rising fuel prices, weaker freight rates, and higher financing costs combined to weaken trucking conditions in June, industry analyst FTR reports.
Its Trucking Conditions Index (TCI) dropped to -3.36, marking the first time the index was in negative territory for two consecutive months since April/May 2020.
“We might still see some positive outliers in the TCI – especially if diesel prices continue to fall sharply – but the truck freight market has hit an inflection point,” said Avery Vise, FTR’s vice-president – trucking.
“Modestly negative readings likely will be the norm rather than the exception, although we are not forecasting that the bottom will drop out. We still expect that freight volume will grow slightly this year and next and that capacity utilization will bottom out above the 10-year average. However, this forecast does not presume an economic recession, so downside risks are substantial.”
Have your say
This is a moderated forum. Comments will no longer be published unless they are accompanied by a first and last name and a verifiable email address. (Today's Trucking will not publish or share the email address.) Profane language and content deemed to be libelous, racist, or threatening in nature will not be published under any circumstances.