FTR’s Trucking Conditions Index in February declined to -5.17 from January’s -1.71 reading, reflecting weaker freight rates and volume. Those headwinds for trucking companies more than offset slight improvements in utilization and fuel costs, FTR says. Financing costs remain a negative factor for carriers, but they are largely stable.
FTR notes that the TCI is forecast to remain in negative territory until well into 2024.
“While market conditions for trucking companies weakened in February, the relatively better – though still negative – TCI in January was the outlier. The industrial and consumer sectors are sluggish, although spending on goods is still elevated and consumer inflation is slowing,” said Avery Vise, vice president of trucking, FTR. “Freight volume is holding up better than many anticipated, but downside risks are substantial. Although fears of a major banking crisis have abated since March, tighter lending standards by banks on top of the Federal Reserve’s interest rate hikes could slow the economy further.”
