FTR Trucking Conditions Index hits highest level in a decade

The last few editions of the Trucking Conditions Index from freight transportation consultancy FTR have showed some significant swings in market conditions.

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.

Following an April, which marked its lowest reading ever, at -28.66, the May edition of the TCI showed modest improvement, to 5.19. And June, the most recent month for which data is available, came in at 11.35, which FTR said is the highest TCI reading in a decade.

Despite this gain, FTR said that it is not clear how long the drivers for the June reading—a combination of higher utilization and strong growth in freight demand and rates—will stay intact.

“The reversal of fortune in trucking has been staggering but fairly simple to understand. Freight demand came roaring back in June after the contraction in March and April, but capacity has barely moved,” said FTR Vice President of Trucking Avery vise, in a statement. “We remain concerned that Washington’s financial support subsidized the economic rebound significantly and that continued strong support might be necessary until a vaccine is widely available. However, even putting that issue aside, we anticipate some stabilization as an inventory rebuild probably accounts for some of the recent demand growth. Also, we see some indications that carriers are beginning to restore driver capacity, at least modestly.”