Trucking fundamentals keep revenues ahead of costs: FTR

NASHVILLE, Ind. — Carriers improving ability to garner higher rates as industry capacity tightened led to an increase of FTR’s Trucking Conditions Index, to 13.30 in March from 9.92 the month before.

Any reading above zero indicates an adequate trucking environment with readings above 10 a sign that volumes, prices and margin are in a good range for trucking companies, explains FTR.

"During the first months of 2011, the fundamentals of the balance between the supply and demand for truck transport was obscured by the normal seasonal weakness in demand," says Eric Starks, President of FTR. "Now that we are moving into the higher freight months the dimensions of the capacity situation are beginning to come into sharper focus as we expected."

He added that demand for truck transport is growing at a normal rate for this point in the economic recovery; and due to continuing strength in the manufacturing sector demand is expected to hold up despite the temporary weakening of GDP growth.

"We believe that these fundamentals will enable trucking revenues to outpace the significant increases in trucking costs, including higher driver wages, fuel prices and more expensive equipment," he said.  


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