Bloomington, IN – FTR says trucking fundamentals are still strong, despite a slight drop in the Trucking Conditions Index (TCI) in October.

The index fell to 8.53 in October, down from its September reading of 9.07. Both months are down from 2013’s numbers of 9.97 for September 2013 and 9.12 for October 2013.

According to FTR, underlying capacity utilization is retreating from the dangerous 99% level reached earlier in 2014, but the market is expected to remain tight.

FTR forecasts capacity to ease very modestly in 2015 and, when combined with continued freight growth, rising rates, and falling fuel costs, the index will remain elevated throughout next year.

“Market fundamentals remain strong for carriers as we approach the end of 2014,” said Jonathan Starks, FTR’s director of transportation analysis. “Our expectations for the TCI are for it to maintain its current high level throughout 2015, as we continue to see a very positive market for fleets and drivers for at least the next year.”

He said capacity is still tight, but not nearly as severe as early in 2014.

“FTR data indicates a drop of nearly 1.5 percentage points in truck utilization since the high of 99% achieved last winter,” he said. “The Market Demand Index from Internet Truckstop confirms our stance – after averaging nearly 25 during the first half of 2014, it is currently below 20.”

He added that contract rates continue to edge higher, and spot rates are still well above prior year levels, even accelerating some in the last few weeks.