FTR’s July Trucking Conditions Index grows at a reduced rate

The fluctuating month-to-month market conditions swings in the Trucking Conditions Index from freight transportation consultancy FTR continued again in its most recent edition, which was released 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.

The July TCI, which is the month for which the most recent data is available, came in at 2.84, well below June’s 11.35, which is the highest reading in a decade, according to FTR.

July’s reading was the most recent example of the TCI’s uneven patterns, with April representing the lowest reading ever, at -28.66, and May heading up to 5.19, in advance of June’s 11.35.

FTR explained that, despite the sequential June to July decline, trucking conditions are still favorable for carriers amid the ongoing recovery. And it added that carriers took advantage of stronger freight rates while the freight demand and capacity utilization that set the stage for those rates settled somewhat during the month. FTR expects the TCI to stay in positive territory through the balance of the year and into 2021.

“The rebound we saw in June took a bit of a breather in July, but the surge yielded higher spot rates, said Avery Vise, FTR Vice President of Trucking, in a statement. “Spot volumes and rates were stronger in August, and imbalance is at record levels. The near-term outlook remains favorable for carriers, but we could see some stabilization soon. Record low retail inventories relative to sales likely are a big driver of freight demand, and August employment data showed the first real signs that significant capacity is returning.”