FTR’s Trucking Conditions Index (TCI) for September, at a reading of 5.47, retreated somewhat from August. However, the overall positive trend in the index reflects the modest tightening in capacity as additional regulations take effect in 2017.
This expected drag on capacity should improve pricing and margins for carriers through the end of next year. The Trucking Conditions Index is forecasted to reach its peak in late 2017 or early 2018.
Details of the September TCI are found in the November issue of FTR’s Trucking Update, published October 30. The “Notes by the Dashboard Light” section in the current issue includes guest commentary by Paul Newbourne, chief operating officer of Covenant Transport Solutions, “Collaboration: The new Road to Transportation Efficiency” along with FTR’s look at trucking conditions post-election. Along with the TCI and “Notes by the Dashboard Light,” Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.
Jonathan Starks, chief operating officer at FTR, commented, “The presidential election results have created some uncertainty in the market, mainly due to the lack of political and legislative experience from President-elect Trump. There are certainly several areas where the new administration could make an impact on the marketplace - with regulations being the chief area of presidential power in that regard. We will learn more in the upcoming weeks and months as the administration’s team is finalized and the legislative and regulatory agenda is cemented. I wouldn’t look for any significant impacts to the U.S. economy until relatively late in 2017. The U.S. economy should continue to grow - and trucking will grow slowly with it.”