FTR’s Trucking Conditions Index (TCI) measure for August, at a reading of 9.53, reflects healthy freight growth projections. Positive revisions to Q1 and Q2 economic data have improved FTR’s freight growth forecast to +4.4% for full year 2015.
The TCI has been steadily rising over the past months and is expected to remain in the current range through the end of the year. This will be followed by upward momentum in 2016 as new regulations eat away at trucking capacity.
Eric Starks, President at FTR, comments, “While the TCI has moved higher, we are hearing from shippers that the current capacity situation has been better than anticipated as we move through the peak shipping season. Even with capacity utilization easing some, truckers are still able to make money. This is translating into healthy demand for equipment as orders for trailers have remained strong. The strong TCI is in contrast to some economic indicators that suggest the economy is stagnant. Even with the economy painting a mixed picture, trucking conditions are still expected to remain at levels that are healthy through the end of this year.”