The Trucking Conditions Index for November — produced monthly by FTR Associates — rose nearly two full points to a reading of 9.7, FTR announced this week, saying the improvement was expected, as the conditions impacting the trucking industry have been continually improving.
The Index is a compilation of factors that affect trucking companies, and any reading above zero indicates a positive environment for the industry. Any reading above 10 indicates conditions are “likely to be in a solidly favorable range for trucking companies,” FTR says.
Increased utilization is the primary driver, FTR says, and the industry will see a one-time boom from rebuilding efforts in the Northeast in the wake of Hurricane Sandy.
“We were forecasting an improved environment for trucking even before the agreement just reached to avoid the ‘fiscal cliff,’ says FTR’s transportation analysis director Jonathan Starks. “There are still political hurdles to navigate in early 2013, but the agreement takes some of the uncertainty out of business plans. We’ll keep monitoring the economy closely to look for any renewed softness in demand, but for now we believe capacity will tighten during 2013.”