The freight transportation forecasters at FTR are reporting that after 2015 the trucking industry will be facing an unprecedented range of outcomes for the next few years, due to the arrival of two powerful forces that could swing capacity utilization ten percentage points in either direction.
“A swing of just 5% is enough to dramatically impact pricing in the marketplace,” said Noël Perry, senior transportation economist at FTR. “A swing of 10% – that would be a disruptive event, for both transport executives and supply chain professionals. There will be companies with their heads stuck in the sand; you don’t want to be one of those companies.”
A major negative force, says FTR, is the growing chance of recession, looming over a recovery that is clearly getting old and increasingly buffeted by the bad economic news coming from many global sectors. It is not an event that can be readily identified in advance, but FTR believes that the chances for it will be increasing. This is just one of many topics that will be covered at FTR’s annual Transportation Conference, held Sept. 15-17, 2015 in Indianapolis, IN. Information on the conference can be found here.
