FTR Trucking Conditions Index trends down but still at a healthy level

While it did not match up with a 14-year high as it did in its previous reading, the most recent edition of the Trucking Conditions Index from freight transportation consultancy FTR, turned in another solid reading last week.

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 August, the most recent month for which data is available, the TCI reading was 10.24, which, while still strong, did not measure up to July’s 14.04. The August reading was also below May and June at 11.4 and 11.18, respectively.

FTR explained that the “moderation” in August indicates there was some stabilization in freight rates, coupled with incremental capacity additions. And the firm added that the current level of freight demand remains healthy, with the TCI expected to remain at current levels for the next year and possibly beyond that.

“The August TCI reading is the lowest of 2018 so far, but prior to this year the TCI had not been higher than 10.24 since December 2015,” said Avery Vise, FTR vice president of trucking, in a statement. “In other words, the moderation we see in trucking conditions really just highlights how phenomenal the first half of 2018 was. Based on our current forecast, trucking conditions will remain positive at least through 2019.”