FTR’s TCI for December Reflects a Modestly Weaker Market for Trucking Companies

December’s decrease was due mostly to a higher cost of capital and a deterioration in freight rates

FTR’s Trucking Conditions Index for December fell to a reading of -4.31 from -1.35 in November. Although December’s TCI was weaker than November’s index, it otherwise indicated the least negative overall market conditions for carriers since May. December’s decrease was due mostly to a higher cost of capital and a deterioration in freight rates. The outlook remains below neutral market conditions through 2024.

Avery Vise, FTR’s vice president of trucking, commented, “We finally see indications that larger carriers are no longer absorbing the bulk of driver capacity displaced by failing small carriers, suggesting a steady tightening of capacity that eventually could spark a turn in the market. If the recent upturn in diesel prices continues, the capacity drain among small carriers might accelerate. Even so, the industry will need stronger freight demand, and we still don’t see any significant inflection in volume until at least the second half of this year.”

Category: Cab, Trailer & Body, Equipment, Featured, General Update, News, Products, Transit News, Vehicles