CSCMP's Supply Chain Quarterly
May 19, 2019
Forward Thinking

Trucking business conditions continue to tumble, FTR index shows

Comment
Monthly measure for February hits lowest mark since August 2017, as industry retreats from record high demand of 2018.

FTR February 2019 Trucking Conditions IndexThe historically high demand for trucking services continues to fall from its record highs of 2018, and is quickly nearing neutral territory where supply and demand will be balanced, freight industry consulting firm FTR said today.

FTR's Trucking Conditions Index fell in February to a reading of 1.71, its lowest reading since August 2017, in a reflection of easing market conditions for the transportation segment, the Bloomington, Ind.-based freight transportation forecasting and consulting firm said.Economic indicators linked to freight volume are generally weaker entering the new year, but the current measure shows that the rate environment in trucking continues to soften. FTR projects the TCI measure to remain close to neutral throughout 2019 and into 2020.

The index's drop toward the neutral range comes exactly 12 months after it hit an all-time high of 15.41 in February 2018. In FTR's index, positive numbers mean strong conditions for carriers—and tough sledding for shippers—while a zero reading indicates that truck supply and demand are roughly in balance.

"We continue to see modest weakening in trucking conditions due to the near-term easing of freight rates and volumes, but we should remain generally above neutral during the coming year. However, we are close enough to neutral that negative TCI readings are now a possibility," Avery Vise, FTR's vice president of trucking, said in a release.

Join the Discussion

After you comment, click Post. If you're not already logged in, you will be asked to log in or register.


Want more articles like this? Sign up for a free subscription to Supply Chain Executive Insight, a monthly e-newsletter that provides insights and commentary on supply chain trends and developments. Click here to subscribe.

We Want to Hear From You! We invite you to share your thoughts and opinions about this article by sending an e-mail to ?Subject=Letter to the Editor: Quarter : Trucking business conditions continue to tumble, FTR index shows"> . We will publish selected readers' comments in future issues of CSCMP's Supply Chain Quarterly. Correspondence may be edited for clarity or for length.

Want more articles like this? Subscribe to CSCMP's Supply Chain Quarterly.