FTR’s Trucking Conditions Index Improves in April but is Still Negative

“Better days are in sight for trucking companies, but the market still needs to work through the tough combination of too much capacity and sluggish freight demand”

FTR’s Trucking Conditions Index indicated a more hospitable environment for carriers in April but remained negative at a reading of -1.95, up from -7.25 in March. Both freight rates and financing costs were less negative, and freight volume improved. The TCI has not been positive in any month since early 2022 and likely will be mostly mildly negative for the rest of the year. The index could see some outlying positive readings as it moves closer to neutral territory.

Avery Vise, FTR’s vice president of trucking, commented, “Better days are in sight for trucking companies, but the market still needs to work through the tough combination of too much capacity and sluggish freight demand. The May payroll jobs figures for trucking offered some encouragement that this transition is underway, but a healthier situation for carriers will require continued rightsizing of capacity and stronger volume. We still do not expect consistently favorable market conditions for carriers until early next year.”
Details of April TCI are found in the June issue of FTR’s Trucking Update, published on May 31, 2024. Additional commentary in the June edition analyzes the lingering excess trucking capacity among both small and larger carriers. The Trucking Update includes data and analysis on load volumes, the capacity environment, rates, and the economy.

The TCI tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings in either direction suggest significant operating changes are likely.

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