Indicators: Conditions for carriers crests at ‘most favorable’

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CCJ‘s Indicators rounds up the latest reports on trucking business indicators on rates, freight, equipment, the economy and more.

Market conditions for trucking companies, according to FTR’s monthly Trucking Conditions Index, were nearly unchanged in June from May. That is — the industry’s operating at maxed-out capacity, translating to a strong rates environment for carriers. However, the industry’s capacity crunch could be hitting its peak, FTR says, with stabilization coming in the second half of the year in the form of added capacity and supply chain productivity enhancements.

“Conditions likely are approaching their most favorable for carriers in the current cycle, as additional drivers and trucks as well as ongoing supply chain adjustments to tight capacity and electronic logging devices should bring modest stabilization,” says Avery Vise, FTR’s vice president of trucking. “However, given strong manufacturing and construction activity, stimulus from government spending and tax cuts, and a very tight labor market, trucking conditions for the next year should remain stronger than at any point from 2015 through 2017.”