FTR’s Trucking Conditions Index for April dipped into negative territory, declining to a reading of -0.81 from 0.28 in March.
“Tariffs and supply chain moves to minimize them have distorted freight market dynamics even though the overall TCI implied essentially neutral trucking conditions in February through April. As we finalize data for May and beyond, those factors and swings in diesel prices are likely to expose the true instability in the freight market. Meanwhile, developments such as rapidly rising truck insurance premiums and, plausibly, tighter scrutiny over truck drivers’ English language skills could serve to tighten capacity in the coming months. Uncertainty over the market’s direction remains quite high,” says Avery Vise, FTR’s VP of trucking.
Key takeaways:
· Although overall market conditions changed only marginally, the underlying factors shifted greatly.
· Freight rates were still technically a negative contribution within the TCI, but improved sharply vs. March.
Freight volume swung from the largest positive of all factors in March to the largest negative in April.
