FTR’s Trucking Conditions Index (TCI) for July remains in a positive range with a reading of 5.75 reflecting tightening capacity, rising spot rates, and a further impact this fall and winter from the implementation of Electronic Logging Devices.
As detailed in the September issue of the Trucking Update, the TCI measure has not risen higher because it’s driven in large part by contract market conditions and it’s the spot market segment that is currently being pushed higher. Spot market data continues to support FTR’s near 100% active utilization index. Contract prices are expected to increase in 2018 as capacity further tightens, which will move the Trucking Conditions Index up through the year.
Jonathan Starks, chief operating officer at FTR, said: “The combination of multiple hurricanes, strengthening spot market conditions, and the final push towards ELD implementation means trucking is ready to shift into a higher gear. Fleets are finally starting to talk positively about market conditions after being stuck in a relatively sluggish environment for more than a year. Spot rates were up double-digits versus last year before the hurricanes hit and have surged further since then. When you add in a slightly more robust economy, capacity reductions due to Hurricanes Harvey and Irma, extra freight for storm recovery, and productivity reductions as ELDs are fully implemented; that’s a market which gives fleets a reason to be optimistic as we head towards 2018.”