BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index for December declined to 2.67 from November’s 3.02 reading.
“Preliminary data suggests that market conditions were tough for carriers in January, but we still forecast consistently favorable market conditions for carriers to begin soon,” said Avery Vise, FTR’s vice president of trucking.
Minimal Decrease
While the decrease was minimal, the underlying factors changed substantially. Freight rates in December were considerably more unfavorable for carriers than they were in November, but the contributions from freight volume and capacity utilization were much improved. While FTR’s forecast for trucking conditions envisions near-term weakness due to fuel prices and freight rates, FTR expects the TCI to be consistently positive by Q2.
“Freight rates have been sluggish, however, so the risk of a slower recovery than currently forecast is significant,” Vise said. “Volatility in economic data due to tariff expectations and response from businesses and consumers injects further uncertainty into the outlook. Despite these concerns, we are confident in modestly stronger conditions for trucking companies at least by the second half of the year.”
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
