NASHVILLE, Ind. — Truck conditions improved slightly in November, according to the latest Trucking Conditions Index, which measures overall trucking industry health in the US as compiled by FTR.
The index improved by slightly less than two points from October to a reading of 5.2 in November, FTR announced. That places the index in positive territory for more than a year.
The index suggests the environment for truckers remains “modestly favourable with decent growth, capacity and pricing conditions,” FTR announced. The forecaster projects the index will continue its upward trend through 2012, however it warned that a widely projected capacity crunch resulting from drastic change to US hours-of-service rules may be averted, since the rule changes were not as severe as many expected and any changes will not come into effect until 2013.
The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates an adequate trucking environment, with readings greater than 10 suggesting volumes, prices and margins are in a good range for trucking companies.
“The 2012 environment is coming into better focus now that it is certain that no changes in Hours-of-Service regulations will occur before 2013 at the earliest,” said Larry Gross, senior consultant for FTR. “The conditions for the trucking industry will now turn on the fundamentals of supply and demand, as well as the continuing effects of existing new safety regulations such as CSA. We expect these factors combined will work to keep trucking capacity modestly tight over the course of the year, enabling continued progress on trucking rates for carriers.”
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