FTR’s Trucking Conditions Index remains in solid territory

Positive signs of improvement remained intact in the most recent edition of the Trucking Conditions Index (TCI), which was published this week by freight transportation consultancy FTR.

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 February 2021 TCI, which is the most recent month for which data is available, came in at 11.23, ahead of January’s 10.37 and December’s 8.51 readings.

FTR said this represents the highest TCI reading going back to October 2020’s 16.17 and the firm pointed to strong capacity utilization and freight rates, as well as stable freight volume offsetting surging diesel prices, which tapered off in late March after a weeks-long run.

What’s more, FTR explained that trucking’s near-term outlook is very strong and said it expects the TCI to come in at double-digit positive readings past the second quarter of 2021 and to stay in positive territory through 2022.

“You could hardly devise better market conditions for trucking companies as demand is robust in both the consumer and industrial sectors and lingering labor-related challenges due to the pandemic are keeping a lid on capacity,” said Avery Vise, FTR’s vice president of trucking, in a statement. “We do not expect any noticeable easing in this environment until this fall, and even when that occurs, we do not anticipate that conditions will stabilize as quickly as they did in late 2018 and 2019. The outlook is not without risks, including shortages and disruptions in the supply chain. However, even those risks arguably have an upside by potentially bolstering freight demand over a longer period.”