Trucking Conditions Index (TCI) for May, as reported in the July issue of our Trucking Update, eased slightly from the April record reading (16.82) to a still-robust 15.72. Stronger freight rates would have pushed the index to a third straight record, but a swing in diesel prices from a slight positive in April to a negative in May, along with slightly weaker capacity utilization, offset those gains. The TCI is forecast to remain at double-digit positive readings through 2021 and to remain positive through 2022. However, this outlook depends on only incremental improvement in driver capacity in the near term.
Details of the May TCI are found in the July 2021 issue of our Trucking Update, which includes details on how a recent revision in historical industrial production data affects FTR’s truck freight volume forecasts. Beyond the TCI and additional commentary, the Trucking Update includes data and analysis on load volumes, the capacity environment, rates, and the economy.
VP of Trucking
Avery Vise commented, “Market conditions in the flatbed segment appear to be stabilizing, but we do not have clear signs of the stress in the van markets easing. The solid increase in for-hire trucking's payroll employment during June might be a hint that the market is peaking, but we expect considerable friction to remain in the supply of drivers at least into next year. However, one of the market stresses has been the unprecedented surge in small new trucking operations, which has added to market disruptions. With high diesel prices and truck insurance costs, we would expect many of those drivers to return to the security of larger employers once spot rates start falling significantly. This possibility along with the end of generous unemployment benefits represent risks in the outlook.”
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Derek Young Business Development Manager, FTR | Transportation Intelligence
Derek is the Business Development Manager at FTR and is a great resource for anyone interested in learning about FTR products and service. Contact Derek to learn more about how FTR can support your business needs.