FTR’s Trucking Conditions Index (TCI) for March dropped from the previous month of 15.41 to a reading of 10.30. This is, however, not indicative of any fundamental change in the current freight demand climate.
Indeed, the Trucking Conditions Index remains more than triple the 2017 reading of 2.97. The carrier-favorable environment is not expected to see any real change at least through 2018 with even more positive conditions during the second and third quarters. FTR forecasts conditions for carriers stabilizing at a high level into 2019 as fleets continue to add capacity and the supply-chain adjusts to the ELD regulation.
Jonathan Starks, chief intelligence officer at FTR, said: “While diesel prices increases are a negative for the carriers, the relatively modest uptick in recent fuel costs is more than offset by significant gains in pricing and overall strong demand for transportation.
“The Market Demand Index published by Truckstop.com and FTR shows that the spot market is once again tightening, rising each of the last four weeks to 58.1 in week 18. It is likely to hit new record highs as we approach the summer shipping season at the end of May.”
Avery Vise, vice-president of trucking research added: “The latest data suggests that the capacity crunch has stabilized somewhat following the electronic logging device implementation, but it certainly has not abated. The most recent jobs report serves as a warning that carriers might find adding capacity tougher in the months ahead, an outcome that could help maintain margins but limit revenue opportunities.”