Trucking Conditions Index falls in May

Updated Jul 10, 2012

FTR’s Trucking Conditions Index for May, as reported in the July 2012 Trucking Update, fell markedly from the previous month to a reading of 5.1, down nearly 4.0 points.

According to FTR, April’s strong performance was not sustained and the TCI has dropped to the lowest level in six months.  This weak performance at this time in a recovery is said to reflect soft pricing results for Q1 2012 and the moderate levels of driver shortages.

“The weakening recovery is making itself felt in lackluster growth in truck freight demand.  Although carriers have been very disciplined thus far during the recovery, choosing not to add capacity, the lack of freight volume growth is constraining the industry’s ability to raise rates,” says Larry Gross, FTR senior consultant. “We still expect industry conditions to slowly improve from here as we progress into the second half of the year.”

The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates a positive environment for truckers with readings above 10 a sign that volumes, prices and margin are in a solidly favorable range for trucking companies.

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