REPORT: New Data Indicates Trucking Conditions Are “Weak But Stabilized”
Bloomington, IN – The latest Trucking Conditions Index (TCI) report by industry analyst FTR Transportation Intelligence was not great news for trucking businesses.
FTR recently released its newest data from August and conditions worsened for carriers.
The TCI, which tracks changes in freight volumes, freight rates, fleet capacity, fuel price, and financing within the U.S. trucking market, dipped from July to August showing a reading of -1.11.
In July, the TCI bounced back into positive territory with a reading of .28, which was substantially higher from its lowest point in March.
FTR analysts said July’s positive reading was in part due to the lower cost of diesel fuel.
However, August data was negatively impacted by weak utilization and higher financing costs, FTR said.
FTR analysis indicated active truck utilization edged down in August to 87.4%.
Active utilization is expected to remain below the 10-year average of 91% through 2020, FTR said.
Additionally, freight-related indicators continue to be stable, but uninspiring.
Avery Vise, FTR’s vice president of trucking, commented, “Although trucking conditions are weak, we believe that they have stabilized for the industry as a whole. However, larger carriers appear to be faring much better than small carriers, which are far more exposed to weak spot rates and to rising liability insurance costs.”
Vise recently predicted trucking stakeholders have likely already experienced the worst of conditions this year.
“Most of the near-term risks to our outlook are on the downside,” he said.
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