BLOOMINGTON, IN – FTR remains confident in this year’s freight market, despite a March drop in its Trucking Conditions Index (TCI) that measures freight volumes, rates, capacity, fleet bankruptcies, fuel prices and financing. Spot rates are improving, and that indicates a market-wide move to tighter capacity, the analysts add.
“The main reasons for the reduction in the March TCI stems from slightly weaker freight activity, reduced estimates of capacity tightness, and continued weaker-than-expected conditions for contract rates,” says Jonathan Starks, Chief Operating Officer. “Trucking conditions are likely to stay in this moderate range until late this year when the Electronic Logging Device (ELD) mandate comes into effect. Once you combine the productivity hit coming from full implementation of ELDs with continued freight growth and the capacity reductions that have already occurred, you get a market that is poised to see significant movement in rates.”
And spot market prices are up 5% over last year, he notes, referring to findings in Truckstop.com’s Market Demand Index.
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