FTR Associates on Wednesday, July 6, said that its May Trucking Conditions Index remained basically flat month over month with a reading of 7.3 and appears to have stabilized in solidly positive territory after April’s sharp one-month drop in response to softened economic conditions.
FTR’s Trucking Conditions Index is a compilation of factors affecting trucking companies and has remained in positive territory for the past seven months. Any reading above 0 indicates an adequate trucking environment, with readings above 10 a sign that volumes, prices and margin are in a good range for trucking companies.
“The leveling off of the TCI after only a one-month decline is an encouraging sign,” says Eric Starks, FTR president. “The trucking industry appears to be negotiating the economic ‘soft patch’ in good fashion.”
Starks says that although FTR has moderated its expectations with regard to the industry’s ability to raise rates later this year, the overall environment remains favorable. “We expect the TCI to resume its improvement trend shortly,” he says.