FTR Trucking Conditions Index turns negative

The most recent edition of the Trucking Conditions Index (TCI) from freight transportation consultancy FTR turned in a negative reading for the first time “in several” years,” it said this week.

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 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 -1.18, which FTR said reflects a softening environment for carriers as freight rates see continued easing, coupled with a sluggish, but positive, demand outlook. And FTR added that active truck utilization, as well as the truckload rate outlook saw more easing in March, with the weakness for truckload rates mostly coming from the spot side. The contract rate outlook, it said, is also negative, albeit slightly. Looking ahead, FTR said that the outlook for loadings growth is now down slightly compared to previous forecasts, with annual growth expected to be a little below 2%.

“卡车运输业本质上返回neutral conditions as deterioration in most market factors are offsetting continued solid, but not robust, freight demand,” said FTR Vice President of Trucking Avery Vise in a statement. “We generally expect this balance to continue into 2020, but TCI readings could turn positive or negative month to month based on relatively minor shifts in demand, utilization, rates, or costs.”