The FTR Associates’ Shippers Conditions Index tightened every so slightly in September from August, moving to -6.9 from -6.8, the Nashville, Ind., transportation forecasting firm announced Nov. 19.
This settling point “indicates the current statues of stable but slightly tight truck capacity,” says FTR’s report, and that conditions will deteriorate throughout the rest of 2012 and 2013, as a increasing freight demand is outweighed by impending federal regulations that could restrict driver productivity and truck capacity.
“Uncertainty with regard to the future will continue at high levels until the outcome of ongoing “fiscal cliff” negotiations becomes clear. We are optimistic that the results of these discussions will not inflict great damage to the economy. With the re-election of President Obama, we can expect the current regulatory climate to remain in place. The conditions are therefore set for slow tightening in freight markets as we move through next year,” says an FTR senior consultant, Larry Gross.