Carolyn Franks AdobeStock_157451465
FTR’s Trucking Conditions Index for January improved to -1.41 from the December reading of -4.3, indicating a less challenging financial environment for carriers.
“Our forecast for freight volume is modestly stronger, but excess capacity continues to temper our expectations for a market revival. Absent a triggering event like a surge in fuel prices, for example, we see a continued gradual drain of capacity that will not begin to shift market fundamentals for months. The eventual rebound also might be uneven as the first signs of improvement could slow the exit of excess capacity and delay a sustained recovery,” says Avery Vise, FTR’s VP of trucking.
Key takeaways:
- Freight rates and financing costs were not as negative as during the prior month, although fuel costs were not as favorable either. The outlook for trucking conditions improved but remains in negative territory for most of the year.
