FTR reports significant gains in Trucking Conditions Index

The most recent edition of the Trucking Conditions Index (TCI) from freight transportation forecasting firmFTRcontinued to show a recent growth push, with the July TCI, which is the most recent month for which data is available, hitting a new high for 2015.

The July TCI came in at 8.07. The TCI reflects tightening conditions for hauling capacity and is comprised of various metrics, including capacity, fuel, bankruptcies, cost of capital, and freight. According to FTR, a TCI reading above zero represents an adequate trucking environment, with readings above ten indicating that volumes, prices, and margin are in a good range for carriers.

FTR said that significant upward revisions to first quarter freight growth have helped to push up full year growth projections to nearly 4 percent, adding that it is now showing up in improved TCI readings, which were driven down in recent months.

“Stock market gyrations may have caused concern, but the freight market continues to chug along,” said Jonathan Starks, FTR Director of Transportation Analysis in a statement. “Pressure to add more drivers has momentarily eased, yet freight continues to increase and rates paid to truckers are still relatively strong. Depending on the markets that they serve, carriers are either seeing growing rates or they are only a little behind the very high rates seen last year. Continued easing of diesel prices helps with cash flow for small carriers, and Q3 should be good for both revenue and profits. There are still a large litany of issues that remain unresolved [though].”

Among those issues he cited are the impending driver shortage, the closely regulated regulatory agenda, and how carriers and shippers can collaborate to alleviate those challenges.