Trucking Conditions Index

Trucking Conditions Index for August Slipped to a Still Strong 11.5 Reading

FTR’s Trucking Conditions Index in August slipped from July’s 12.4 reading to a still robust 11.5 as the run-up in freight rates basically stabilized. Rates remained by far the largest positive for the TCI, but they were only slightly stronger than they had been in July. Fuel costs were a mild drag on financial conditions while capacity utilization and financing costs remained favorable for carriers. Despite record high diesel prices in September, the index is expected to remain solidly positive through the two-year forecast horizon.

Details of the August TCI are found in the October issue of FTR’s Trucking Update. The Trucking Update includes data and analysis on load volumes, the capacity environment, rates, and the economy.

Avery Vise, FTR’s vice president of trucking, commented, “The surge in diesel prices to successive record highs has introduced a wild card into the truck freight market. As we noted last month and explored in more detail in our October report, if fuel costs were to force out many small carriers, the shift of drivers to larger carriers could relieve some of the tightness in trucking capacity.

"While spot rates remain quite robust, cash flow has become more critical. High diesel prices alone would have only a modest impact on overall market conditions, but they might trigger other changes that could be more meaningful.”

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This index represents five major conditions in the U.S. full-load truck market. These metrics are combined into a single index that tracks the market conditions that influence fleet behavior.

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Trucking Conditions Index for August Slipped to a Still Strong 11.5 Reading