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TCI remains high in the U.S.

BLOOMINGTON, Ind.– Freight Transportation Research (FTR), an American source for logistic and transportation research and analysis, has reported the Trucking Conditions Index (TCI) reading still remains high due to capacity tightness...


BLOOMINGTON, Ind.– Freight Transportation Research (FTR), an American source for logistic and transportation research and analysis, has reported the Trucking Conditions Index (TCI) reading still remains high due to capacity tightness from regulatory drag (Hours of Service).

Even though the TCI reading of 9.18 in October saw a marginal decrease, it is still regarded as high.

Truck utilization is in the rage where increasing capacity constraints put upward pressure on rates. Slowing regulatory momentum would ease this situation, but if increased economic growth is realized in 2014, shipping rates will further increase and add to a positive trucking bottom line.

Jonathan Starks, FTR’s director of transportation analysis said, “While the total truck industry is showing solid freight growth, the highly visible dry van sector has been relatively stagnant for most of 2013.

“However, as cost increases continue to move higher, especially following the implementation of new HOS regulations this summer, we look for rates to follow suit. They began moving up during the third quarter but not sufficiently enough to make up for the increased costs, and carriers’ margins deteriorated. The increased public rhetoric from fleet executives about his issue is setting up the scene for continued rate movement into 2014.”

 

 

 

 

 

 

 


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