FTR’s Trucking Conditions Index ticks upward entering 2012

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Trucking Conditions

FTR on Tuesday, Jan. 3, announced that its Trucking Conditions Index increased by slightly less than two points from the previous month to a reading of 5.2 in November. FTR says the index indicates the environment for truckers remains modestly favorable, with decent growth, capacity and pricing conditions.

The TCI, which now has been in positive territory for more than a year, is projected to continue to move upward over the course of 2012, but the removal of hours-of-service regulation changes from the 2012 equation has made a severe capacity shortage much less likely, FTR says.

The Trucking Conditions Index is a compilation of factors affecting trucking companies. 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.

“The 2012 environment is coming into better focus now that it is certain that no changes in Hours of Service regulations will occur before 2013 at the earliest,” says Larry Gross, FTR senior consultant. “The conditions for the trucking industry will now turn on the fundamentals of supply and demand, as well as the continuing effects of existing new safety regulations such as CSA. We expect these factors combined will work to keep trucking capacity modestly tight over the course of the year, enabling continued progress on trucking rates for carriers.”