FTR Trucking Conditions Index drops to lowest level in more than two years

The new edition of the Trucking Conditions Index (TCI), which was published late last week by freight transportation consultancy FTR, remained negative, for the sixth consecutive month.

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 October, the most recent month for which data is available, the TCI reading sank to -11.25, well below September’s -2.35, for its lowest reading since the all-time low of -28.66 in April 2020.

FTR attributed the October decline to sharp increases in fuel and financing costs, as well as what it called an unfavorable trend in freight rates, which brought about a major deterioration for trucking companies’ financial conditions in October.

“We do not see a month on the horizon as difficult as October was for trucking companies, but nor do we expect much for carriers to get excited about,” said Avery Vise, FTR’s vice president of trucking, in a statement. “The rate environment looks to keep market conditions at least mildly negative into 2024. Plunging diesel prices obviously are bolstering financial conditions in the near term, and the hit from financing costs likely will begin moderating by mid-2023. Those costs have disproportionately hurt smaller carriers recently, and improvements in those situations likewise will not help larger carriers as much as smaller ones.”