Trucking Conditions Index Falls But Still Remains in Positive Territory

After a spike to a 11.44 positive reading in December, FTR’s Trucking Conditions Index fell to 5.79 in January. The January level was attributed to higher costs of capital along with lower freight demand and capacity utilization.

Avery Vise, FTR’s vice president of trucking, commented, “Trucking conditions in January were not the outlier that December conditions were, but the industry still enjoyed much lower diesel costs than had been the case for most of 2018. With diesel prices now rising and capacity utilization and freight rates easing, we would expect January to represent the high point for trucking conditions in 2019.”

The Trucking Conditions Index tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel price, and financing. The individual metrics are combined into a single index that tracks the market conditions that influence fleet behavior. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. The index tells you the industry’s health at a glance.

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