A recent report from FTR Associates concludes that the outlook for trucking continued improving in February, as its Trucking Conditions Index rose another two points in the month to a reading of 12.9.
Any reading above 10, says FTR, means that “volume, prices and margins are likely to be in a solidly favorable range for trucking companies.”
This is the second straight month the TCI has read higher than 10.
The reading has been pushed upward by the combination of two key factors, says FTR: Steadily increasing freight volumes and tightening hours-of-service regulations, which together point to the chance for trucking companies to nudge up rates.
FTR says the index is likely to peak this summer but will remain strong afterward.
“Industry capacity and demand for truck freight services are currently very close to equilibrium and it will not take much to move the needle to a supply shortage that should benefit truckers,” Says FTR’s Jonathan Starks.