FTR’s June Trucking Conditions Index turns in lowest reading since November 2022

The new edition of the Trucking Conditions Index, which was recently by freight transportation consultancy FTR, took a step back and remained in negative territory.

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 June, the most recent month for which data is available, the TCI came in at-6.29, losing ground from May’s -3.75 reading. The April TCI reading was -3.88, faring better than March’s -5.83, which came on the heels of February’s -5.17 reading. This was preceded by January’s -1.71 reading, which came on the heels of December’s -6.1 and November’s -7.94. That was preceded by October’s -11.25, its lowest level since the April 2020 all-time low, at -28.66. The September TCI reading came in at -2.35.

FTR said May’s reading was impacted by modestly weaker conditions for carriers, as freight rates were less negative, while all other key factors deteriorated. What’s more, June marked the lowest TCI reading since November 2022.

“Based on our assessment, for-hire trucking companies have already faced the longest period of consistently unfavorable market conditions since the Great Recession,” said Avery Vise, FTR’s vice president of trucking, in a statement. “We expect negative TCI readings to continue for nearly a year longer and little, if any, improvement until early 2024. As we have noted before, the challenges are not uniform as the current market is hitting small carriers much harder than larger ones, especially considering the recent upturn in diesel prices.”