FTR’s Trucking Conditions Index sees significant gain

The new edition of the Trucking Conditions Index (TCI), which was released today by freight transportation consultancy FTR showed significant growth, due to various market factors. 

The TCI reflects tightening conditions for hauling capacity and is comprised of various metrics, including capacity, fuel, bankruptcies, cost of capital and freight.

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 December, the most recent month for which data is available, the TCI came in at 11.46, a significant increase over November’s 5.84 and October’s 3.17. FTR said strong sequential volume gains, as well as a favorable fuel environment paced this growth.

But FTR said there is a catch in that this high December TCI reading is unlikely to be sustained in 2019, expecting readings to fall back into the mid-single digit positive levels in January and subsequently heading to more neutral conditions by the fourth quarter.

“While we don’t anticipate truly negative trucking conditions at any point in 2019, we think we have seen the end in this cycle of the abnormally strong pro-carrier conditions that had held sway from the days following the 2017 hurricanes through the second quarter of 2018,” said Avery Vise, FTR VP of trucking, in a statement. “December 2018 probably was just one last taste of the good ol’ days of six months ago.”