In The News
FTR Trucking Condition Index increases to new high
NASHVILLE, Ind. — FTR’s Trucking Condition Index rose to 7.1 in December 2010, the highest level yet recorded during the current recovery, the industry analysts report.
The TCI reflects tightening conditions for hauling capacity, according to the February Trucking Update. Current conditions and strong prospects going forward are expected to steadily raise this index — possibly to a new record in early 2012.
The Trucking Conditions Index is a compilation of factors affecting trucking companies, and the current readings as well as the forecast for the next few years bodes well for increased vehicle utilization and solid pricing power for carriers through the period, FTR said.
Delays in implementation of HOS and CSA regulations should push out the peak shortage timing to early 2012, the firm also noted.
“We have been forecasting steady improvements for the trucking sector. Conservative fleet attitudes towards adding drivers and equipment combined with the continuing growth of freight means that trucking companies should see their equipment utilization nearing 100% later this year,†said FTR President Eric Starks. “As a result, carriers will have greater latitude to both raise rates and to be more selective with regard to freight. Despite the impact from regulatory drag being moved further out, improving economic conditions will help make 2011 a good year for trucking companies.â€
The monthly Trucking Update is part of FTR’s Freight Focus Series and reports data that directly impacts the activity and profitability of truck fleets. As part of the Trucking Update, FTR forecasts expected trends in this data and the probable short and long term consequences.
FTR Associates has been in transportation forecasting for more than 20 years. Their forecasts cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar.
Kevin Jones of
The Trucker
staff can be reached for comment at [email protected]
.
www.theTrucker.com