In The News
September FTR index reflects strong market trends
BLOOMINGTON, Ind. — FTR’s Trucking Conditions Index (TCI) for September at a positive reading of 9.07 reflects strong underlying market trends, according to the FTR November issue of Trucking Update.
The TCI has moved up in the last couple of months because of increased rate gains, and will remain in very positive but stable territory for the foreseeable future, the report said.
FTR expects little change in the TCI unless and until there is a change in the economy or increased regulatory drag on capacity. Capacity utilization currently stands within 100 basis points of its all-time record and is at the breakpoint between manageable tightness and crisis.
The “Notes by the Dashboard Light†commentary in the report explains the nuances of current economic data affecting trucking and how to interpret the information. Along with the TCI and “Notes by the Dashboard Light,†the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, costs, and the truck driver situation.
"Spot market activity and rates have been easing, but this is to be expected at this time of year,†said Jonathan Starks, FTR's director of transportation analysis. “Rates are still well above year-ago levels and will stay that way until we lap winter conditions in January and February. The contract market is lagging on rate growth, but we still see a concerted upward shift over the last year.
“The combination of Hours of Service changes in 2013 with weather events in 2014 was enough to move market conditions in truckers’ favor. Contract negotiations will take place during the winter slow season — we will see how much market clout the fleets are able to use. The real results will come later in the year. Successful shippers will be able to secure capacity and limit cost inflation by working with their carrier base rather than focusing on negotiating strength."
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