FTR reports growth for most recent reading of Trucking Conditions Index
For November, the most recent month for which data is available, the TCI rose 2.67% to 5.84 compared to October’s 3.17 reading.
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The most recent edition of the Trucking Conditions Index (TCI), which was recently released by freight transportation consultancy FTR showed that growth remained intact, due to a few major factors.
The TCI reflects tightening conditions for hauling capacity and is comprised of various metrics, including capacity, fuel, bankruptcies, cost of capital and freight.
According to FTR, a TCI reading above zero represents an adequate trucking environment, with readings above 10 indicating that volumes, prices and margin are in a good range for carriers.
For November, the most recent month for which data is available, the TCI rose 2.67% to 5.84 compared to October’s 3.17 reading. While there was growth from October to November, these readings pale compared to earlier in 2018, such as August’s 10.24 and July’s 14.04 (a 14-year high), as well as May and June at 11.4 and 11.18, respectively.
FTR cited a slightly firmer rate environment and lower diesel prices as the key factors for November’s increase, with the November 2018 TCI “basically unchanged” on an annual basis, despite the volatility affecting the TCI over the past 12 months. FTR officials said that looking ahead the TCI appears to be on a more stable path in 2019, which it expects to result in a near neutral reading by mid-2019.
“We would anticipate that trucking conditions will be relatively stable through the first quarter of 2019 and perhaps a bit beyond that, but the second half of the year should be noticeably weaker due to factors such as lower active truck utilization and increased cost of capital,” said FTR vice president of trucking Avery Vise in a statement. “At this point we expect trucking conditions still to be slightly positive by the end of the year, although the downside risks clearly seem greater than the upside.”