FTR’s Trucking Conditions Index (TCI) measure for July continued its recent rise with a new high for the year at a reading of 8.07. Substantial upward revisions to first quarter freight growth have helped to push full year growth projections close to 4%. The stronger freight forecast is now reflected in the improved TCI readings which previously had been languishing in very modest territory.
Additionally, recent revisions to second quarter GDP growth suggests that improvements in freight drivers could possibly continue. Along with these improvements, FTR is forecasting double digit positive TCI readings by the end of the year, as can be seen in the above graph.
“Stock market gyrations may have caused concern, but the freight market continues to chug along. Pressure to add more drivers has momentarily eased, yet freight continues to increase and rates paid to truckers are still relatively strong,” said Jonathan Starks, FTR’s director of transportation analysis. “Depending on the markets that they serve, carriers are either seeing growing rates or they are only a little behind the very high rates seen last year. Continued easing of diesel prices helps with cash flow for small carriers, and Q3 should be good for both revenue and profits.”
Details of the July TCI are found in the September issue of FTR’s Trucking Update. For details, visit FTR’s website.
