FTR’s Trucking Conditions Index sees some mild improvement

The most recent edition of the Trucking Conditions Index (TCI) from freight transportation consultancy FTR showed mild signs of improvement.

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 June, the most recent month for which data is available, the TCI was -0.82, an improvement over May’s -2.3 and April’s -0.64. March's -1.18 reading was the first time the TCI turned negative in several years FTR said last month. 

FTR said that strengthening freight demand and lower diesel prices were offset by weak truckload rates and easing capacity utilization, coupled with some higher financing costs that negatively affected carriers in June.

Looking ahead, FTR said it expects the TCI to remain in the low single-digit range into 2020, with the possibility of some possible readings over the balance of 2019.

“Although rates remain weak for carriers, they appear at least to be stabilizing,” said Avery Vise, FTR vice president of trucking. “Meanwhile, freight demand appears firmer in recent weeks than in early spring, but the outlook is far from rosy given a softening industrial sector. Our biggest near-term concern, however, is the potential impact of the trade war with China on consumer spending and business investment.”