More “Risks” Than “Upside” For Trucking This Year, FTR Says
Little Rock, Arkansas – Respected freight forecasting company FTR reports trucking conditions rebounded favorably in November ’18 compared to October ’18.
FTR’s Trucking Conditions Index (TCI) for November rebounded by more than two and a half points from October to a reading of 5.84, the company said. FTR attributed the improvements primarily to a “slightly firmer rate environment and lower diesel prices,” according to a released statement.
The TCI has experienced a good bit of volatility over the past 12 months. However, the 2018 November TCI was basically unchanged from a year ago.
FTR predicts a more stable outlook in 2019. Avery Vise, FTR’s vice president of trucking, commented, “We would anticipate that trucking conditions will be relatively stable through the first quarter of 2019 and perhaps a bit beyond that, but the second half of the year should be noticeably weaker due to factors such as lower active truck utilization and increased cost of capital.”
Vise also foresees 2019 posing more risks than gains for the trucking industry. “At this point we expect trucking conditions still to be slightly positive by the end of the year, although the downside risks clearly seem greater than the upside,” Vise said.
About FTR’s Trucking Condition Index
FTR’s 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.