The most recent edition of the Trucking Conditions Index (TCI) from freight transportation consultancy FTR turned in its lowest reading going back to 2017.
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 February, the most recent month for which data is available, the TCI was 1.71, down from January’s 5.79. December’s reading was 11.46, which marked 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 those growth levels at that time.
FTR said that February’s 1.71 reading reflects the easing market conditions for this transportation segment. And it added that economic indicators linked to freight volume are generally weaker entering the New Year and the rate environment in trucking continues to soften. FTR projects the TCI measure to remain close to neutral throughout 2019 and into 2020.
“We continue to see modest weakening in trucking conditions due to the near-term easing of freight rates and volumes, but we should remain generally above neutral during the coming year,” said Avery Vise, FTR vice president of trucking, in a statement However, we are close enough to neutral that negative TCI readings are now a possibility.”