FTR’s Trucking Conditions Index heads down but remains strong
The most recent edition of the Trucking Conditions Index (TCI), which was recently issued by freight transportation consultancy FTR saw a decline while remaining on solid footing.
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.
The November TCI, which is the most recent month for which data is available, came in in 10.26, down from October’s record high reading of 16.17. And the firm said that the trucking environment remains strong, as rising freight rates continue to power robust trucking conditions.
Looking ahead, FTR said it expects the TCI to settle into single-digit positive readings through 2021, which reflects a healthy—but more stable—truck freight market.
“Market conditions for trucking companies remain quite strong, and they should be for months to come,” said FTR Vice President of Trucking Avery Vise in a statement. “Economic indicators still point to strength in freight demand, and total spot volume is holding at record levels. Although consumer spending has stabilized, the industrial sector is beginning to build some momentum. Also, the latest help from Washington at a minimum should keep consumer spending from falling in the near term. Meanwhile, constraints on the driver supply related to the pandemic—fewer new drivers trained and significantly reduced U.S. labor participation—likely will keep capacity tight through most of the year at least.”
