FTR’s Trucking Conditions Index for May showed miniscule month-over-month improvement to a reading of -3.75 from -3.88 in April, indicating a mildly negative environment for carriers. Falling fuel prices, slightly less unfavorable rates and utilization offset weaker volume in May as market conditions remain weak but stable. According to its findings, FTR’s TCI forecast is negative through the middle of 2024. In general, weak rates and elevated financing costs are expected to offset tiny incremental improvement in freight demand and utilization.

“If there’s any good news for trucking companies, it’s that conditions are not really deteriorating. Freight volume is largely stable, and driver capacity appears to be falling steadily but slowly. However, this market climate could stick around well into 2024, resulting in weak freight rates and low margins,” Avery Vise, vice president of trucking at FTR, commented. “Solid financial management has never been more critical as trucking companies cannot count on a rising tide lifting all boats anytime soon.”