VIEW CART (0 ITEMS)


FTR’s Trucking Conditions Index for December Reflects Stable Conditions for Carriers Likely to Continue Through 2016

02.20.16


FTR’s Trucking Conditions Index (TCI) measure for December rose more than two points to a reading of 10.88.  FTR’s forecast is that 2016 will be a year of placid conditions for trucking companies, with little or no change in the current trend of tight, but adequate, capacity.  Two events could impact capacity utilization and possibly, temporarily, raise rates:  if the FMCSA reinstates the Hours of Service changes, and if weather shocks to truck productivity turn out to be greater than currently anticipated.  FTR’s forecast for truck loadings growth stands at 3% for the full year reflecting strong freight multipliers unusual this late in a recovery. The recent GDP data highlights the potential that they won’t continue. Any fall in these multipliers remains the major downside exposure. 


Click here to view the latest release and an interactive graph of the TCI >


Jonathan Starks, Chief Operating Officer at FTR, commented, “The trucking environment is still quite healthy. There is no doubt that growth has slowed for certain segments, and there are increasing uncertainties surrounding growth prospects for the U.S. economy. However, contract rates are still rising, albeit slowly, and there is very little capacity that is exiting the system. You can see this in the Truck Failures figures that are reported by Avondale Partners as they sat near historic lows throughout 2015. Falling fuel is clearly helping cash flow for small carriers, but declining spot market rates are negating some of that improvement. Overall, the trucking industry seems to be in a relatively stable environment as we move into 2016.”

Details of the December TCI are found in the February issue of FTR’s Trucking Update, published February 1, 2016. The ‘Notes by the Dashboard Light’ commentary in the current issue discusses the threats to the U.S. economy from the current global economic turmoil.  Along with the TCI and ‘Notes by the Dashboard Light,’ Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.

Trucking Update, published monthly, is part of FTR’s Freight Focus and reports data that directly impacts the activity and profitability of truck fleets. As part of Trucking Update, FTR forecasts expected trends in this data and the probable short and long term consequences. For more information on how to subscribe to Trucking Update, or other publications within FTR's Freight Focus, send an email to [email protected]  or call (888) 988-1699 ext. 1.

For more than two decades, FTR has been the thought leader in freight transportation forecasting in North America. The company’s national award-winning forecasters collect and analyze all data likely to impact freight movement, issuing consistently reliable reports for trucking, rail, and intermodal transportation as well as providing demand analysis for commercial vehicle and railcar. FTR’s forecasting and specially designed reports have resulted in advanced planning and cost-savings for companies throughout the transportation sector.
 
Click here to download a sample report >