FTR’s June Trucking Conditions Index, as reported in the August Trucking Update, rose slightly to a reading of 7.7 from 7.3 in May.
The reading is expected to remain in modestly positive territory until Q4 when it likely will resume climbing fueled by a combination of tonnage growth and constraints in the driver supply as the effect of new driver regulations kicks in, FTR says. The Trucking Conditions Index is a compilation of factors affecting trucking companies and has remained in positive territory for the past eight months. Any reading above zero indicates an adequate trucking environment with readings above 10 a sign that volumes, prices and margin are in a good range for trucking companies.
“After a dip in March the TCI stabilized in June still in positive territory. The trucking industry has been performing well despite the very anemic economic growth experienced during the first half of the year,” says Larry Gross, FTR senior consultant. “Solid results and rate improvements have been achieved even at a growth rate of less than one percent in GDP. This indicates that supply and demand is currently in balance and that even limited demand growth during the second half should result in substantial improvement in conditions for truckers.”