Bloomington, Ind.-based FTR has released its Trucking Conditions Index (TCI) measure for July that shows a continued recent rise with a new high for the year at a reading of 8.07.
Substantial upward revisions to Q1 freight growth have helped to push full year growth projections close to 4 percent, the trucking industry forecaster predicts. The stronger freight forecast is now reflected in the improved TCI readings, which had been languishing in very modest territory.
Additionally, recent revisions to second-quarter GDP growth suggests that improvements in freight drivers could possibly continue. Along with these improvements, FTR is forecasting double-digit positive TCI readings by the end of the year.
Jonathan Starks, FTR’s director of transportation analysis, said, “Stock market gyrations may have caused concern, but the freight market continues to chug along. Pressure to add more drivers has momentarily eased, yet freight continues to increase and rates paid to truckers are still relatively strong.
“Depending on the markets that they serve, carriers are either seeing growing rates or they are only a little behind the very high rates seen last year. Continued easing of diesel prices helps with cash flow for small carriers, and Q3 should be good for both revenue and profits.”
Details of the July TCI are found in the September issue of FTR’s Trucking Update. The Notes by the Dashboard Light commentary in the current issue discusses the recent volatility in the stock market. 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.