FTR’s Trucking Conditions Index falls but remains in positive territory

It would appear that the record-setting amounts of prosperity that the industry has experienced in 2018 is coming to a close at the end of the year. The Trucking Conditions Index (TCI), which is released by a freight transportation consultancy (FTR), continues the downward trend that has been seen in Q3 and Q4. While not affecting the growth of the industry as a whole, it does show that the industry’s immense success seems to be moving back to a more neutral level.

The lessening conditions are a result of certain outside constraints that have dampened the industry as a whole. While capacity itself seems to have taken a hit, the cost of hiring new truckers along with rising diesel fuel prices is making the environment less favorable then it was even four months ago. In August and July, the TCI readings were 10.24 and 14.04 respectively while October was 3.17, down even from August’s 4.58. This downward trend is due to diesel prices increasing and truckload rates not continuing their massive amounts of growth.

The expectation, however, is that this downward trend will rise by back in the coming months after the positive trends of the holiday season. Unfortunately, though, it would appear that the industry as peaked in FTR’s mind, meaning that the 14 years high will most likely stay as a high and never be surpassed.

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