FTR’s Trucking Conditions Index declines but remains in solid territory

The most recent edition of the Trucking Conditions Index (TCI), which was recently issued by freight transportation consultancy FTR, saw a decrease, with the TCI still in a position of growth.  

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.

The July TCI, which is the most recent month for which data is available, came in at 10.78, down from June’s 12.61 and May’s 15.72. The all-time record reading, for the TCI, is May’s. 16.82, which topped March’s 16.17, the previous all-time high.

FTR said that market conditions are still robust for carriers despite some modest easing over the past three months from the record TCI posted in April. In July, a softer rate and utilization environment along with a slightly higher cost of capital was offset by somewhat by a stronger freight demand. And it added that the outlook for carriers remains strong with double-digit positive readings forecast through 2021.

“We have yet to see any softening of market conditions that are basically the strongest trucking companies have ever seen—certainly for such a prolonged period,” said Avery Vise, FTR’s vice president of trucking, in a statement. “However, we are finally seeing some movement toward more driver capacity. The recovery in trucking’s payroll employment has accelerated over the past three months even as the number of newly authorized carriers—most of which would not be captured by payroll job data—continues to set records. Meanwhile, the number of pre-employment queries in the drug and alcohol clearinghouse in August was the highest recorded since the clearinghouse began in January last year. These developments have not shown up in any weakening of trucking conditions, but they certainly increase the chances for some stabilization in the coming months.”