FTR’s TCI reading slows but still shows growth; future growth is in doubt

The most recent edition of the Trucking Conditions Index (TCI), which was recently issued by freight transportation consultancy FTR, saw another slight decline in February, the most recent month for which data is available.  

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.

February’s TCI reading—at 0.96—slipped from January’s 2.04 and December’s 3.02, a month that was paced by gains in freight demand and spot rates and turned in its highest reading going back to January 2019, as well as the first positive reading since checking in at 0.28 in in July 2019.

These three months of consecutive gains represent the first time the TCI has been positive for that period of time in a year, according to FTR. But Avery Vise, FTR Vice President of Trucking, observed in the report future growth in the TCI may not be likely for a while going forward.

“Although trucking conditions might prove to be comparable to the worst of the Great Recession, the trucking industry – like the rest of the economy – has never seen such an abrupt deterioration,” said Vise in a statement. “The need to restock grocery shelves provided a brief boost for some segments, but the economic shutdown now has taken a toll on the whole industry. While an economic restart likely will begin in May, the damage wrought during this period will weaken trucking conditions for months to come.”