FTR’s Trucking Conditions Index falls in September

FTR’s Trucking Conditions Index falls in September, improvement expected in 2016

FTR’s Trucking Conditions Index (TCI) measure for September declined from the previous month to a reading of 8.46 (as seen in the graph above). The Trucking Conditions Index has been uneven through 2015 and is expected to decline further by the end of the year. The trucking environment remains in a fragile equilibrium between decent freight growth and lower, but still high, capacity utilization. Price growth in 2015 has been very modest, but a more positive TCI in 2016 will reflect expected rate increases later in the year, according to FTR.

“Inventory destocking, sluggish trade, and weak manufacturing have created an environment much different than last year for truckers and transportation professionals,” said Jonathan Starks, FTR’s director of transportation analysis. “While overall capacity is relatively tight, there is a dichotomy between what is seen in the contract potion versus the spot market. As supply has increased relative to demand, loads have moved back to the contract and dedicated markets that ran out of excess capacity in 2014 due to regulations and weather. The spot market, on the other hand, is showing definite weakness, with load activity weak, truck supply up significantly, and rates down from prior year. Contract rates continue to rise, although they have started to show some slowing. The market is relatively stable, with the major risk coming from a potential slowdown in freight demand due to the items mentioned earlier. If slow growth in the economy continues, the next significant change in market conditions isn’t expected until fleets start implementing the coming regulations. That is likely to occur in the second half of 2016.”

For more details, visit FTR’s website.

You May Also Like

Class 8 orders strong in February

Even when seasonally adjusted, ACT says preliminary order numbers for February are up 5% over January.

ACT-Class-8-Feb-truck-orders

According to the latest numbers from ACT Research, preliminary North America Class 8 net orders were 27,700 units, up 600 units from January and 16% from a year ago. With the fourth-largest seasonal factor of the year at 8%, seasonal adjustment reduces February’s Class 8 intake to 25,600 units, up 5% from January.

“Weak freight and carrier profitability fundamentals, and large carriers guiding to lower capex in 2024, would imply pressure in U.S. tractor, the North American Class 8 market’s largest segment,” said Kenny Vieth, ACT’s president and senior analyst. “While we do not yet have the underlying detail for February order volumes, Class 8 demand continuing at high levels again this month suggests that U.S. buyers continue as strong market participants.”

Kenworth delivers 15-liter natural gas-powered truck to UPS

The truck is equipped with the Cummins X15N, which Kenworth says will meet CARB and EPA Requirements for both 2024 and 2027.

Kenworth-delivers-CNG-truck-to-UPS
ACT Research: 2024 could see trucking recovery

Despite trucking demand remaining weak, ACT Research says imports and international data indicate positive trends in 2024.

ACT-for-hire-index-Jan-24
Navistar progressing toward autonomous hub-to-hub transport

Autonomous truck testing is underway, and the company expects customer pilots to be delivered later this year.

Navistar-Autonomous-partnership-Plus-international-truck
FTR Trucking Conditions Index falls in December

FTR says the drop was mostly due to higher capital cost and a deterioration in freight rates, a trend that could stretch into 2024.

FTR-TCI-december-2023

Other Posts

Scania reports 2023 growth in sales, progress on sustainability

The company says sales and performance are increasing as they move toward the goal of electrification, but there are challenges along the way.

SCANIA-Logo-vector
Fullbay: Repair shop sales and labor rates rose in 2023

A new report shows that counter sales and labor rates rose significantly in 2023 from the previous year.

Fullbay-TMC
ACT Research: Trailer orders dip as cancellations climb

Preliminary data for net trailer orders in January seems to follow a continued softening trend, according to ACT Research.

ACT-Research-Trailer-Net-Orders-down-Cancellations-up-Jan-2024
Good News! Parts, labor costs fell slightly Q4 2023

Decisiv, TMC Benchmarking Report shows trend reversal from previous quarter.

Decisiv-TMC-Benchmarking-Report-1400