June Trucking Index Stays on Downward Trend
Nashville, IN — FTR’s Trucking Conditions Index for June continued its downward trend, declining a half point from May to a reading of 4.5.
This was weaker than initial expectations, FTR said.
The economy is getting better, although rather modestly, supporting 3 percent tonnage growth. But that’s not enough for carriers to sustain a stronger pricing position during the summer shipping season, FTR said.
“We expect the index to further weaken slightly during the summer months but to remain in positive territory,” said Jonathan Starks, director of Transportation Analysis for FTR.
“Improvement will resume as we head into the Fall peak as traffic builds and the delayed introduction of new Federal regulations begin to restrict capacity. This trend will continue into 2013, culminating with the introduction of new Hours of Service rules by the FMCSA in July of next year. Given our expectations of a rising driver shortage, combined with a tailwind versus year-ago fuel prices and continued modest freight growth, the index should steadily increase into 2013.”
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