FTR’s Trucking Conditions Index Falls to Lowest Level in Six Months

FTR’s Trucking Conditions Index for May fell nearly 4 points from the previous month to a reading of 5.1, as reported in the July 2012 Trucking Update. April’s strong performance was not sustained and the TCI has dropped to the lowest level in six months.

This relatively weak performance at this time in a recovery reflects soft pricing results for Q1 2012 and the moderate levels of driver shortages.

The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates a positive environment for truckers with readings above 10 a sign that volumes, prices and margin are in a solidly favorable range for trucking companies.

“The weakening recovery is making itself felt in lackluster growth in truck freight demand,” said Larry Gross, Senior Consultant for FTR. “Although carriers have been very disciplined thus far during the recovery, choosing not to add capacity, the lack of freight volume growth is constraining the industry’s ability to raise rates. We still expect industry conditions to slowly improve from here as we progress into the second half of the year.”

For more information on how to subscribe to the Trucking Update or other publications within the Freight Focus Series, send an email to cdavis@ftrassociates.com or call Clay Davis at 1-888-988-1699, Ext. 1.

Related content: FTR’s Trucking Conditions Index Climbs in April

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