FTR Trucking Conditions Index continues to post strong results

The most recent edition of the Trucking Conditions Index (TCI), which was issued this week by freight transportation consultancy FTR, continued to point to an overall strong market.

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 September, the most recent month for which data is available, the TCI came in at 11.79, up from August’s 11.63.  The July TCI reading was 10.78, trailing June and May, at 12.61 and 15.72, respectively. The all-time record reading, for the TCI, is May’s. 16.82, which topped March’s 16.17, the previous all-time high.

FTR said that freight rates continued to show strength in September, with the caveat that freight volume and capacity utilization were not as beneficial to carriers as they were in July and August, adding that the TCI forecast looks strong over the course of the balance of 2021.

“The market remains stubbornly favorable to carriers due in large part to continued strong consumer spending and the effects of supply chain troubles on productivity,” said Avery Vise, FTR’s vice president of trucking, in a statement. “The latest payroll employment data for trucking implies a considerably stronger recovery in driver capacity than had appeared previously, but the ongoing surge in newly authorized small carriers continues to shift capacity and thwart a return to normal. Moreover, even if carriers start to see recruiting challenges ease up, continued struggles in truck production due to parts and material shortages could limit capacity in the months ahead. A key factor for the freight market will be whether consumer spending remains so robust beyond the holidays and the end of advance child tax credit payments in December.”