FTR’s Trucking Conditions Index fell by over two points in June. The drop is attributed to higher costs in labor, fuel, and equipment, reflecting less favorable conditions for trucking.
Jonathan Starks, FTR's COO, said, “Despite the monthly drop from May to June, the TCI has stayed in a relatively stable range since this time last year. It remains positive, but does not yet indicate that a significant change in operations is occurring.”
FTR is projecting around half of the growth for 2018 with an increased risk of recession toward the end of 2018.
“The potential for such a change increases as we move through 2018, with ELD implementation and continued freight growth hindering truck capacity,” said Starks. “We are also beginning to hear stories of increased difficulty in hiring as the economy begins approaching full employment.”
There has also been a strong increase in the spot market; and according to Starks, it could be an indicator as to how rates in the contract market are likely to move.
“Spot data in early August shows that the rate increases have hit the double-digit mark and are still moving up,” said Starks. “Market participants need to continue evaluating conditions ahead of the ELD implementation in December to make sure that they are prepared for the possible disruptions that could occur.”
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