The most recent edition of the Trucking Conditions Index (TCI), which was issued this week by freight transportation consultancy FTR, recovered in April, from a very low March reading.
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 April, the TCI came in at 3.21, well above March’s -7.38, which was the first negative TCI reading since May 2020. April was below February’s 12.06 reading and January’s 11.46, driven by what FTR, at the time, called a “sizable increase in fuel costs as freight rates were strong and freight demand improved.”
While April was up over March, FTR labeled the reading as “weak for the pandemic market,” being the lowest reading since July 2020 aside from March’s -7.38 reading. The firm added that diesel prices in April were relatively stable, but softer capacity utilization and freight rates made for positive but lackluster market conditions for trucking companies. And it added that the outlook is mildly positive in the near term, but ongoing fuel price increases and other factors could result in further negative readings.
“Recent strong gains in trucking’s payroll employment support our analysis that freight demand has remained solid and that weaker spot market metrics this year indicate a shift of activity back to more normal route guides,” said Avery Vise, FTR’s vice president of trucking, in a statement. “Driver availability no longer is the key issue to watch in trucking conditions; increasingly, the principal question will be the resilience of freight demand. Downside risks are high and growing due to inflation and related stresses, but our forecasting model so far is not identifying a downturn.”