Strong Trucking Market with Tight Capacity According to FTR Index
According to the FTR Trucking Conditions Index (TCI) reading of 8.82 for January, indications are that the economy reflects a very positive environment for truckers in early 2014.
FTR expects the index to remain high as regulatory drag keeps capacity tight. The 2.8 point increase in the index from December to January reflects the belated improvement in truckload rates that began last summer with Hours of Service changes.
Jonathan Starks, FTR’s Director of Transportation Analysis, commented, “While freight certainly took a hit to start 2014 numerous other indicators are positive for the industry and line up with our expectations for the remainder of the year.
“Namely, the capacity situation for trucking was highlighted when the severe weather hit and capacity shortages started occurring. These shortages illustrate that the industry has been operating with much less surge capacity available than in the past, and spot market pricing responded and has stayed elevated through much of February.”
Category: Featured, General Update, Management
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