FTR’s Trucking Conditions Index hits third highest reading in more than 10 years

The most recent edition of the Trucking Conditions Index (TCI), which was recently issued by freight transportation consultancy FTR, pointed to still-strong market environment for motor carriers.

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 September TCI, which is the month for which the most recent data is available, rose more than 2%, to 10.69, marking the TCI’s third highest reading going back to January 2010.

FTR said this tally points to strong freight rates, driven by what it called “intense stress in the consumer goods supply chain.”

“We envision trucking conditions remaining strong for a while—probably well into 2022—although we could see some near-term softness once we normalize retail inventories.,” said FTR Vice President of Trucking Avery Vise in a statement. “An industrial recovery should support broad-based growth in freight volume. Robust spot rates already are starting to push up rates in the much larger contract arena, and constraints on the driver supply stemming from the pandemic likely will maintain that pressure. However, continued strong economic recovery is not secured given the latest surge in COVID-19 infections and a political environment that likely makes further relief and stimulus more difficult. The road ahead is still not crystal clear.”