FTR’s Trucking Conditions Index (TCI) for September at a reading of 5.47 retreated somewhat from August. However, the overall positive trend in the index reflects the modest tightening in capacity as additional regulations take effect in 2017. This expected drag on capacity should improve pricing and margins for carriers through the end of next year. The TCI is forecasted to reach its peak in late 2017 or early 2018.
Jonathan Starks, Chief Operating Officer at FTR, comments, “The presidential election results have created some uncertainty in the market, mainly due to the lack of political and legislative experience from President-elect Trump. There are certainly several areas where the new administration could make an impact on the marketplace - with regulations being the chief area of presidential power in that regard. We will learn more in the upcoming weeks and months as the administration’s team is finalized and the legislative and regulatory agenda is cemented. I wouldn’t look for any significant impacts to the U.S. economy until relatively late in 2017. The U.S. economy should continue to grow - and trucking will grow slowly with it.”