Trucking conditions ‘solidly favourable’ in February: FTR Index
April 11, 2013
BLOOMINGTON, Ind. -- Trucking conditions continued to improve in February, according to the latest figures from the FTR Trucking Conditions Index (TCI). February saw an increase of two points to a reading of 12.9 on the Index. The TCI is...
BLOOMINGTON, Ind. — Trucking conditions continued to improve in February, according to the latest figures from the FTR Trucking Conditions Index (TCI). February saw an increase of two points to a reading of 12.9 on the Index. The TCI is designed to summarize a full collection of industry metrics, with a reading above zero indicating a positive environment for truckers. Readings above 10 indicate that volumes, prices, and margins are likely to be in a solidly favourable range for trucking companies.
FTR officials say the July implementation of the revised Hours-of-Service rules and improving freight will tighten capacity and allow truckers to push rates higher. The TCI’s upward movement is expected to peak during the summer but remain strongly positive for some time, according to FTR.
“The majority of indicators through the early part of 2013 have been solidly favourable for trucking. The lone outlier is truck freight rates, which have been stable but have shown very little growth since early 2012,” said Jonathan Starks, director of transportation analysis for FTR. “We expect that situation to change once the new HoS rules go into effect in July. Industry capacity and demand for truck freight services are currently very close to equilibrium and it will not take much to move the needle to a supply shortage that should benefit truckers.”
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