FTR’s Trucking Conditions Index improved in August to -1.39 from the reading of -5.59 in July. A return to consistent decreases in fuel prices was the biggest factor in better market conditions for carriers in August, although all factors improved at least minimally, the company reports.
FTR forecasts TCI readings to remain mostly negative to neutral through the beginning of 2025.
“Trucking is en route to more favorable conditions next year, but the road remains bumpy as both freight volume and capacity utilization are still soft, keeping rates weak. Our forecasts continue to show the truck freight market starting to favor carriers modestly before the second quarter of next year,” says Avery Vise, FTR’s vice president of trucking.
FTR's TCI tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings in either direction suggest significant operating changes are likely, the company says.
