FTR’s Trucking Conditions Index (TCI) for November, at 4.58, changed little from the previous month’s adjusted reading of 4.38. The current TCI level is consistent with FTR’s forecasts of steadily-improving trucking conditions heading into 2017. An expectation for stronger demand, along with the mandate for electronic logging devices (ELD), should tighten capacity through 2017, with the Trucking Conditions Index possibly hitting positive double digits by the end of the year, FTR speculates.
“Cautious optimism is in place as we begin 2017,” commented Jonathan Starks, FTR’s chief operating officer. “All in all, trucking is starting the year off with much better footing than we had one year ago. Truck utilization has improved by three percentage points, and the Market Demand Index (MDI) from Truckstop.com jumped by 40% to end 2016. The capacity situation has tightened at the same time that volumes have begun to show improvement. The outlook for pricing gains has finally shifted back toward the carriers. That is a welcome relief after the weakness seen over the last year and a half.”
For more details on the TCI, visit FTR’s website.