FTR’s Trucking Conditions Index stayed in positive territory in June but weakened to 0.95 from May’s 2.24 reading.
Details matter, however, as core freight dynamics improved for trucking companies during June while higher financing costs and a slowing of diesel price decreases were substantial offsets, the firm reported. FTR expects general improvement in market conditions for carriers, but the TCI could see both positive and negative readings in coming months before turning “consistently positive” by the end of this year, according to its current forecast.
“Today’s market might feel as weak as it has been, but we continue to see a growing foundation for a recovery in financial conditions for trucking companies,” Avery Vise, FTR vice president of trucking, said in a news release. “Strengthening capacity utilization sets the stage for firmer freight rates starting late this year and accelerating somewhat in 2025. Although nothing approaching the likes of 2021 is on the horizon, carriers should be seeing considerably more favorable conditions by next spring.”
The TCI tracks the changes representing five major conditions in the U.S. truck market: 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.