FTR Trucking Conditions Index shows strong growth

October’s reading of 9.48 far outpaced September’s 3.5, with FTR explaining that a strong economy, combined with pressure from hurricane recovery and the ELD mandate, is creating a very tight market resulting in improved contract rates.

By ·

Freight transportation consultancy FTR reported this week that the most recent edition of its Trucking Conditions Index (TCI) continued to trend in the right direction in October, the most recent month for which data is available.

The TCI reflects tightening conditions for hauling capacity and is comprised of various metrics, including capacity, fuel, bankruptcies, cost of capital and freight.

According to FTR, a TCI reading above zero represents an adequate trucking environment, with readings above 10 indicating that volumes, prices and margin are in a good range for carriers.

October’s reading of 9.48 far outpaced September’s 3.5, with FTR explaining that a strong economy, combined with pressure from hurricane recovery and the ELD mandate, is creating a very tight market resulting in improved contract rates.  What’s more, even though the TCI is at a high level, FTR said it could continue to rise during the first half of 2018.  But it came with the caveat that it will likely be followed by softening in industry conditions in the second half of 2018 due to slower freight growth, albeit still equating to solid conditions for carriers.

“The TCI is nearing a double-digit number, which indicates that there are big opportunities for carriers with regard to both rates and the loads they choose to carry,” said FTR COO in a statement. “Of course, there are still quite a few ‘ifs’ in the near future. If the economy can continue to grow at around a 3% rate in Q4 and 2018Q1, we will see freight demand maxing out any excess capacity. If the ELD implementation and enforcement stay on track, the spring will bring capacity utilization over 100% and the freight transportation market will be scrambling to align loads and trucks. If severe winter weather comes into play, transportation managers will be facing their toughest year since 2004. Carriers should be prepared for big changes, and big opportunities.”


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.


Article Topics

ELD · FTR · Rates · TCI · Trucking · All Topics
Latest Whitepaper
Making the Case for Using a Transportation Management System for Parcel Shipping
We discuss the key pain points that all parcel shippers are dealing with right now and show how a multi-carrier transportation management system can help reduce costs, improve efficiencies, and improve the organizational bottom line.
Download Today!
From the June 2019 Logistics Management Magazine
Over the years, we’ve tried to steer clear of too many themed issues because we’re proud to offer our readers a wide breadth of industry information. The logistics and transportation market is so diverse, and shippers are looking to solve a multitude of challenges across a number of modes and services areas—never just one.

Warehouse Execution Systems (WES) Evolves Beyond “inside the four walls”
Got labor? How supply chain companies are recruiting talent during a labor crunch
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly newsletter!
Latest Webcast
How to Solve The Unique Challenges of Multi-Carrier Parcel Shipping
Join Logistyx President Ken Fleming for an appraisal of multicarrier shipping, TMS solutions and the nuances of interpreting Gartner’s Magic Quadrant for TMS, without a barcode label in sight! Using case studies, review scenarios traditional TMS solutions struggle to manage, such as high volume and international shipping, and learn why parcel shipping requires a different solution and how to design your process and architecture to leverage both effectively.
Register Today!
EDITORS' PICKS
Got labor? How supply chain companies are recruiting talent during a labor crunch
How are companies faring in the race to recruit and train high-level supply chain talent in a market...
35th Annual Salary Survey: Compensation matters more than ever
While job satisfaction remains the primary reason for today’s logistics managers to stay with one...

2019 Rate Outlook: Pressure Builds
In 2019, the world economy will enter a third straight year of broad-based growth, but many...
2019 Transportation Management Systems (TMS) Market Update: Keeping pace with the times
The transportation management systems market is growing right along with the number of challenges...
adulttorrent.org/category/hentai_games/7

гантели купить украина

alike.com.ua