FTR: Trucking conditions remain favorable

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Trucking ConditionsFTR’s June Trucking Conditions Indexrose slightly to a reading of 7.7 from 7.3 in May, as reported in the August Trucking Update. The reading is expected to remain in modestly positive territory until the fourth quarter of 2011 when it likely will resume climbing fueled by a combination of tonnage growth and constraints in the driver supply as the effect of new driver regulations kicks in.  The Trucking Conditions Index is a compilation of factors affecting trucking companies and has remained in positive territory for the past eight months. Any reading above zero indicates an adequate trucking environment with readings above 10 a sign that volumes, prices and margin are in a good range for trucking companies.

“After a dip in March the TCI stabilized in June still in positive territory,” said Larry Gross, senior consultant for FTR. “The trucking industry has been performing well despite the very anemic economic growth experienced during the first half of the year.  Solid results and rate improvements have been achieved even at a growth rate of less than one percent in GDP.  This indicates that supply and demand are currently in balance and that even limited demand growth during the second half should result in substantial improvement in conditions for truckers.”