FTR Trucking Conditions Index takes step back, due to softening rate environment

After showing some improvement in April the outlook for trucking took another step back in May, according to the most recent edition of the Trucking Conditions Index (TCI) from freight transportation consultancy FTR.

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 May, the most recent month for which data is available, the TCI was -2.3, a retreat from April's -0.64 and March's -1.18 . March represented the first time the TCI turned in a negative reading for the first time “in several” years,” according to FTR.

FTR said that this reading reflects a general weakness in conditions affecting carriers, with its outlook calling for relative stability through 2019, with the possibility of some slightly positive readings on a month-to-month basis over the remainder of 2019.

And FTR added that May’s reading headed down, due to the softening freight environment and that freight demand was the only positive contributor in the May measure, and it was not particularly strong.

“Although we have dropped from double-digit TCI readings to negative readings in less than a year, we believe the outlook for the rest of 2019 generally is for stability close to neutral conditions,” said Avery Vise, FTR vice president of trucking, in a statement. “It’s also important to recognize that most of the weakness is in the industrial sector, so trucking activity related to consumer demand should be relatively stronger than the rest of the industry.”