By LM Staff ·
October 16, 2020
The most recent edition of the Trucking Conditions Index (TCI), which was recently issued by freight transportation consultancy FTR, highlighted a solid market environment for motor carriers.
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 August TCI, which is the month for which the most recent data is available, came in at 8.31, which is in line with what the firm called a “very favorable rate environment for trucking during the month.”
This reading marked a significant improvement over July’s 2.84, and marked its second-highest reading, going back to March 2018, with the exception of June’s 11.35, the highest reading over the last decade.
August’s reading was the most recent example of the TCI’s uneven patterns, with April representing the lowest reading ever, at -28.66, and May heading up to 5.19, in advance of June’s 11.35.
FTR said it expects the TCI to see a slight September decline and be followed by lower positive single digit readings over the fourth quarter and into 2021.
“The stress on freight markets from replenishing retail inventories following the contraction continues and is keeping rates strong for carriers, said FTR Vice President of Trucking Avery Vise in a statement. “The more industrially focused segments have not benefitted as much so far, but we are beginning to see signs of stronger demand, and the housing market is robust. Although high unemployment and uncertain support from Washington remain risks, we expect trucking conditions to remain strong for a prolonged period.”
October 16, 2020
Subscribe to Logistics Management Magazine!
Subscribe today. It’s FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!