Trucking market continues to head in right direction, says FTR

The current outlook for the trucking sector remains very strong, with no immediate change in sight at the moment, according to the most recent edition of the Trucking Conditions Index (TCI) issued by freight transportation consultancy FTR this week.

By ·

The current outlook for the trucking sector remains very strong, with no immediate change in sight at the moment, according to the most recent edition of the Trucking Conditions Index (TCI) issued by freight transportation consultancy FTR this week.

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 March, the most recent month for which data is available, the TCI came in at 10.30, which is down from February’s 15.41.

While this is a 5.11 point decline, FTR said that is not indicative of a fundamental change in the current freight demand climate, as the March TCI remains more the three times above the March 2017 reading of 2.97. And FTR noted that the “carrier-favorable environment is not expected to see any real change at least through 2018 with even more positive conditions during the second and third quarter.”   It also added that conditions for carriers are expected to stabilize at a high level into 2019 as fleets continue to add capacity and the supply-chain adjusts to the ELD regulation.

“While diesel prices increases are a negative for the carriers, the relatively modest uptick in recent fuel costs is more than offset by significant gains in pricing and overall strong demand for transportation,” said FTR Chief Intelligence Officer Jonathan Starks in a statement. “The Market Demand Index published by Truckstop.com and FTR shows that the spot market is once again tightening, rising each of the last four weeks to 58.1 in week 18. It is likely to hit new record highs as we approach the summer shipping season at the end of May.” 


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

FTR · TCI · Trucking · All Topics
Latest Whitepaper
Strategies to Build Efficiencies into Your Supply Chain and Logistics Operations
This white paper outlines key areas where third party logistics (3PLs), carriers, retailers and manufacturing companies can replace manual repetitive work within their operations with new and innovative robotic process automation technology solutions.
Download Today!
From the November 2018 Logistics Management Magazine
If I were to share a single observation from this year’s CSCMP conference, it would be this: Nearly every conversation I had in Nashville touched on the motor carrier capacity crisis.
Land O’Lakes lock in Texas-based capacity
How will the tariff war with China affect U.S. container ports?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Leveraging the Internet of Things (IoT) in Manufacturing
Is digital transformation a risk or an opportunity? This webinar will detail Manufacturing industry challenges and how using IoT can address these challenges through optimizing logistics, improving processes and gaining meaningful insights.
Register Today!
EDITORS' PICKS
The Logistics News that Shaped 2018
Every year at this time, group news editor Jeff Berman combs through the mountain of news that was...
Land O’Lakes lock in Texas-based capacity
Faced with the challenge of securing capacity in specific lanes, the iconic company broke with...

8th Annual Rail/Intermodal Roundtable: Work in progress
Volumes are strong and steady, service is improving, yet our panel of the nation’s foremost rail...
Transportation Best Practices and Trends: Frios’ cool solution for a hot seller
Gourmet ice pop maker adopts collaborative cold chain solution to keep profits from melting away due...