FTR's Trucking Conditions Index Moves Higher in April
Nashville, IN (June 8, 2012) FTR’s Trucking Conditions Index for April, as reported in the June 2012 Trucking Update, moved significantly higher from the previous month climbing 2.7 points to a favorable reading of 9.1. The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates a positive environment for truckers with readings above 10 a sign that volumes, prices and margin are in a solidly favorable range for trucking companies.
Larry Gross, Senior Consultant for FTR, commented, “Volume growth is modest, but because the industry is not adding capacity, even modest freight growth is sufficient to support firm rates. Although there is a fair amount of volatility in the TCI from month-to-month, and we would not preclude some near-term decline, we expect an overall gradual improvement in trucking conditions through the balance of 2012 and into 2013. This is based on our expectation for higher rates, supported by continued modest growth in freight volume and tightening driver supply due to the implementation of new government regulations. Lower prices for diesel are another factor currently working in the truckers’ favor.”
The Trucking Update published monthly is part of FTR’s Freight Focus Series and reports data that directly impacts the activity and profitability of truck fleets. As part of the Trucking Update, FTR forecasts expected trends in this data and the probable short and long term consequences. The June Notes by the Dashboard Light discusses why the driver shortage has not been as severe as expected in the current recovery. For more information on how to subscribe to the Trucking Update or other publications within the Freight Focus Series, send an email to cdavis@ftrassociates.com or call Clay Davis at 1-888-988-1699, Ext. 1.
FTR Associates, located in Nashville, IN has been a leader in transportation forecasting for over 20 years. The company’s U.S. Freight Model collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups. FTR Associates’ forecast reports cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar. Specially designed reports are offered to participants in both industries to cover specific needs. For more information about the work of FTR Associates, visit www.ftrassociates.com or call Helen Lile at 888-988-1699 Ext. 45.
Larry Gross, Senior Consultant for FTR, commented, “Volume growth is modest, but because the industry is not adding capacity, even modest freight growth is sufficient to support firm rates. Although there is a fair amount of volatility in the TCI from month-to-month, and we would not preclude some near-term decline, we expect an overall gradual improvement in trucking conditions through the balance of 2012 and into 2013. This is based on our expectation for higher rates, supported by continued modest growth in freight volume and tightening driver supply due to the implementation of new government regulations. Lower prices for diesel are another factor currently working in the truckers’ favor.”
The Trucking Update published monthly is part of FTR’s Freight Focus Series and reports data that directly impacts the activity and profitability of truck fleets. As part of the Trucking Update, FTR forecasts expected trends in this data and the probable short and long term consequences. The June Notes by the Dashboard Light discusses why the driver shortage has not been as severe as expected in the current recovery. For more information on how to subscribe to the Trucking Update or other publications within the Freight Focus Series, send an email to cdavis@ftrassociates.com or call Clay Davis at 1-888-988-1699, Ext. 1.
FTR Associates, located in Nashville, IN has been a leader in transportation forecasting for over 20 years. The company’s U.S. Freight Model collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups. FTR Associates’ forecast reports cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar. Specially designed reports are offered to participants in both industries to cover specific needs. For more information about the work of FTR Associates, visit www.ftrassociates.com or call Helen Lile at 888-988-1699 Ext. 45.