According to FTR’s report, the trucking industry in the United States experienced better conditions in January due to increased freight volumes and rates. Despite slightly lower utilization and higher fuel costs, these improvements helped to offset those factors.
The FTR Trucking Conditions Index, which monitors various factors such as freight volumes, rates, capacity, fuel prices, and financing costs, increased from December’s -6.1 to -1.71. This suggests that the trucking conditions in the United States improved in January.
FTR anticipates that the current rating of -1.71 on the Trucking Conditions Index may be the most positive for a while. The index is expected to remain negative until the third quarter of 2024, which will depend on the prices of diesel fuel. This suggests that the trucking industry may continue to face challenges in the near future.
“While overall market conditions for trucking companies remain negative, we still see varied impacts among carriers based on size and type of operation,” said Avery Vise, FTR’s vice-president – trucking.
“For example, freight volume in the van segments looks largely stable or better after a decline in the second half of last year, but more specialized segments are expected to see continued weakness this year,” he explained.
“Also, financing costs have been a consistently negative factor for about nine months as the Federal Reserve battles inflation with higher interest rates, but those costs tend to hurt smaller operations more than larger ones. The recent troubles in the banking sector have further increased the degree of uncertainty as the economy and freight markets move toward a post-pandemic norm.”
