FTR’s Trucking Conditions Index (TCI) for February fell to -5.31 from January’s reading of -1.41. A sharp increase in diesel prices was the principal factor in the deterioration in market conditions for carriers.
“We forecast market conditions for carriers as measured by the TCI to remain negative but to steadily improve through the third quarter. Trucking companies should see more favorable conditions in the fourth quarter and in 2025, although risks to a recovery are still significant. The industrial sector shows signs of improvement, and consumption has been solid. However, inflation and interest rates are still a concern. The biggest issue remains the imbalance between capacity and demand, which continues to depress utilization. Diesel prices are a wild card as an escalation might push out more operations that are struggling financially,” says Avery Vise, FTR’s VP of trucking.
Key takeaways:
- With the recent increase in crude prices, fuel costs could remain a drag on the TCI in the near term.
- Freight market dynamics likely will move gradually toward a less challenging environment for carriers.
