FTRs Trucking Conditions Index for April Remains in Very Positive Territory

Bloomington, IN (June 12, 2013) FTR’s Trucking Conditions Index (TCI) for April as reported in the June 2013 Trucking Update reflects a strongly favorable environment for trucking increasing another 0.7 points for the month to a reading of 13.8. Modest rate increases are expected to resume as freight enjoys reasonable volume growth alongside the reduced trucking productivity that is the result of increased regulations. It is forecast that new regulations will take at least 3% out of trucking capacity.

Freight still OK despite weakening economic growth

“We’re getting much more concerned about the slowing industrial production numbers because that would have a big impact on the freight market,” he said. “But our overall base economic projection for the U.S. remains 2% to 2.5% GDP [gross domestic product] growth and if we can slough off this ‘weak spot’ freight volumes should remain relatively stable. So while the economy is not strong, it’s not expected to drop, either,” Jonathan Starks, transportation analyst for FTR Associates, told Fleet Owner.

Port Volumes Lead Trucking on Spending Optimism

An increase in goods entering California is signaling optimism about the resilience of U.S. consumer spending and the trucking industry this year.

“Trucking volumes are in a positive, but not extremely strong, stage of growth, and we expect that will continue through 2013,” Starks said. FTR is forecasting that truck loadings will rise by “just under 5 percent” this year, he said, compared with 3.2 percent in 2012.

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