FTR’s Trucking Conditions Index sees gains while remaining short of growth

The new edition of the Trucking Conditions Index (TCI), which issued this week by freight transportation consultancy FTR showed improvement over its previous edition, while still falling short of growth.

According to FTR, a TCI reading above zero represents an adequate trucking environment, with readings above 10 indicating that volumes, prices and margin are in a good range for carriers.

For April, the most recent month for which data is available, the TCI reading came in at -1.95, a marked improvement over March’s -7.25, which was its lowest reading going back to September 2023. The February TCI reading was -5.31.

FTR cited what it called a more hospitable environment for carriers in April, adding that both freight rates and financing costs were less negative, and freight volume improved. What’s more, the firm said that the TCI has not been positive in any month since going back to early 2022 and likely will be mostly mildly negative for the rest of the year. It also noted that the TCI could see some outlying positive readings as it moves closer to neutral territory.

“Better days are in sight for trucking companies, but the market still needs to work through the tough combination of too much capacity and sluggish freight demand,” said Avery Vise, FTR’s vice president of trucking. “The May payroll jobs figures for trucking offered some encouragement that this transition is underway, but a healthier situation for carriers will require continued rightsizing of capacity and stronger volume. We still do not expect consistently favorable market conditions for carriers until early next year.”