FTR’s Trucking Conditions Index for September fell to the lowest level in a year at a reading of 4.58. It is the first time the TCI measure has fallen to single digits since December 2017, and is a reflection of some stabilization in freight rates and demand.
Holiday shipping should keep volumes, capacity, and rates healthy causing the TCI to rise through the end of 2018. However, the index is forecast to begin a gradual softening through most of 2019.
Avery Vise, vice-president of trucking, said: “September is a near-term outlier that mostly reflects an unusually rapid stabilization of the spot market due to capacity gains, ongoing completion of bid cycles, and continued adjustment to the electronic logging device environment. A strong economy and labor market should make for a strong fourth quarter heading into a promising 2019, but it’s likely that trucking conditions have peaked in the current cycle.”