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FTR Trucking Conditions Index for September Lowest in a Year

11.28.18 | FTR

 
FTR’s Trucking Conditions Index for September fell to the lowest level in a year at a reading of 4.58. It is the first time the TCI measure has fallen to single digits since December 2017, and is a reflection of some stabilization in freight rates and demand. Holiday shipping should keep volumes, capacity, and rates healthy causing the TCI to rise through the end of 2018. However, the index is forecast to begin a gradual softening through most of 2019.

Details of the September TCI are found in the November issue of FTR’s Trucking Update, published October 29, 2018. The ‘Notes by the Dashboard Light’ section in the current issue has an analysis of the fundamental factors in play and the dynamics of the current housing market. Along with the TCI and ‘Notes by the Dashboard Light,’ the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.

Click here to view the latest release and an interactive graph of the TCI >


Avery Vise, vice president of trucking research commented, “September is a near-term outlier that mostly reflects an unusually rapid stabilization of the spot market due to capacity gains, ongoing completion of bid cycles, and continued adjustment to the electronic logging device environment. A strong economy and labor market should make for a strong fourth quarter heading into a promising 2019, but it’s likely that trucking conditions have peaked in the current cycle.”


The Trucking Conditions Index tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index that tracks the market conditions that influence fleet behavior. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance. In life, running a fever is an indication of a health problem. It may not tell you exactly what’s wrong, but it alerts you to look deeper. Similarly, a reading well below zero on the FTR Trucking Conditions Index warns you of a problem, while readings high above zero spell opportunity. Readings near zero are consistent with a neutral operating environment, and double-digit readings (both up or down) are warning signs for significant operating changes.
 

For more information on how to subscribe to Trucking Update, or other publications within FTR's Freight Focus, send an email to sales@ftrintel.com  or call (888) 988-1699 ext. 1 and follow us on Twitter @FTRintel.

Trucking Update, published monthly, is part of FTR’s Freight Focus and reports data that directly impacts the activity and profitability of truck fleets. As part of Trucking Update, FTR forecasts expected trends in this data and the probable short and long term consequences.
 
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About FTR
For more than two decades, FTR has been the thought leader in freight transportation forecasting in North America. The company’s national award-winning forecasters collect and analyze all data likely to impact freight movement, issuing consistently reliable reports for trucking, rail, and intermodal transportation as well as providing demand analysis for commercial vehicle and railcar. FTR’s forecasting and specially designed reports have resulted in advanced planning and cost-savings for companies throughout the transportation sector.