The most recent edition of the Trucking Conditions Index (TCI), which was recently issued by freight transportation consultancy FTR, saw an increase driven largely by still-strong freight rates.
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 August, the most recent month for which data is available, the TCI came in at 11.63, topping July’s 10.78 reading, and 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 volume and capacity utilization were not as carrier-favorable in August compared to July, adding that more robust freight rates translated into stronger overall market conditions. The firm also observed that the TCI forecast, in the coming months, is calling for strong and favorable readings well into next year.
“Market conditions in trucking still strongly favor carriers, and we have no real sign of an inflection on the horizon,” said FTR Vice President of Trucking Avery Vise, in a statement. “After healthy—though not especially robust—gains in payroll employment during the summer, trucking job growth was relatively weak in September. Meanwhile, the shift of capacity from larger carriers to startups continues, adding to the supply chain disruptions that are bolstering spot market volume and rates for much longer than we would expect in a ‘normal’ hot market like we saw in 2017 and 2018. Rising diesel prices increase the risks of a swing of capacity back toward larger carriers if spot metrics begin to soften, but we have no indication of that happening yet.”