Trucking Conditions Index Dips, Remains Positive
FTR’s Trucking Conditions Index dipped in October but stayed positive, reflecting strong fundamentals for trucking firms, the group said.
The index decreased 0.54 point to 8.53, according to the transportation forecasting firm.
FTR said it expects capacity to ease “very modestly” next year and for the index to remain elevated on falling fuel costs, rising rates and continued freight growth.
“Capacity is still tight, but not nearly as severe as early in 2014,” Jonathan Starks, FTR’s director of transportation analysis, said in a statement. “FTR data indicates a drop of nearly 1.5 percentage points in truck utilization since the high of 99% achieved last winter.”
“Fleets are feeling more bullish about 2015, and it is showing up in ordering activity for new trucks. Class 8 new truck orders hit their second highest level ever in October and fell only modestly in November. While we don’t expect much in the way of additional capacity coming into the system, the carriers are certainly trying to entice drivers, reduce maintenance costs, and enhance fuel economy,” said Starkes.
