FTR’s Trucking Conditions Index shows rebound off its lowest reading in more than a year

Coming off its lowest level in more than a year, the most recent edition of the Trucking Conditions Index (TCI), which was recently issued by freight transportation consultancy FTR, showed a decent rebound.

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 November, the most recent month for which data is available, the TCI came in at 10.0, following October’s 7.75, the lowest TCI reading going July 2020, and below September’s 11.79 and August’s 11.63. 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 attributed November’s gain to steadier diesel prices, adding that slightly firmer freight volume and rates also contributed to the gain as well.
The firm also observed that diesel prices could continue to introduce some volatility into the TCI as prices declined in December but have risen sharply more recently. And it noted that FTR’s outlook is for the TCI to remain in the same range as November through 2022Q1 and then settle into high single digit positive readings for the remainder of 2022. 

“Although we continue to forecast a quite gradual easing of trucking companies’ robust market conditions beginning in the second half of the year, we certainly are seeing no signs of that happening yet,” said Avery Vise, FTR’s vice president of trucking, in a statement. “Freight rates continue to strengthen at least marginally as the spot market shows unprecedented resilience. Solid consumer spending and industrial demand should maintain a high floor on trucking conditions even if we see some modest gains in capacity and productivity.”