Trucking Conditions Index Hits Lowest Point Since November 2022

Shippers continue to gain an edge when it comes to pricing according to recent data sets. The latest release of the Trucking Conditions Index (TCI) from freight transportation consultancy FTR, shows continued deterioration in the trucking environment.

The June reading, the latest month for which TCI data is available, came in at negative 6.29, losing ground from May’s negative 3.75 reading. The April TCI reading was negative 3.88. Both March (negative 5.83) and February (negative 5.17) were lower, but June’s reading is the worst since November 2022’s negative 7.94.

According to FTR, a TCI reading above zero represents an adequate trucking environment, with readings above 10 indicating that volumes, prices, and margins are in a good range for carriers.

FTR said May’s reading was impacted by modestly weaker conditions for carriers, as freight rates were less negative, while all other key factors deteriorated. What’s more, June marked the lowest TCI reading since November 2022.

“Based on our assessment, for-hire trucking companies have already faced the longest period of consistently unfavorable market conditions since the Great Recession,” said Avery Vise, FTR’s vice president of trucking, in a statement. “We expect negative TCI readings to continue for nearly a year longer and little, if any, improvement until early 2024. As we have noted before, the challenges are not uniform as the current market is hitting small carriers much harder than larger ones, especially considering the recent upturn in diesel prices.”