FTR’s Trucking Conditions Index Stays Positive into 2012

NASHVILLE, IN — With the removal of the hours-of-service regulation changes from the 2012 equation, it looks like the possibility of a severe capacity shortage is off the table, reported FTR yesterday.

A recent report by FTR showed November’s Trucking Conditions Index (TCI) rose slightly above the previous month by almost two points. The TCI has now been in positive territory for over a year, FTR said, adding that the TCI is projected to move upward over the course of 2012.

“The 2012 environment is coming into better focus now that it is certain that no changes in Hours of Service regulations will occur before 2013 at the earliest," said Larry Gross, senior consultant for FTR.

"The conditions for the trucking industry will now turn on the fundamentals of supply and demand," he explained, "as well as the continuing effects of existing new safety regulations such as CSA.

"We expect these factors combined will work to keep trucking capacity modestly tight over the course of the year, enabling continued progress on trucking rates for carriers.”

The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates an adequate trucking environment with readings above 10 a sign that volumes, prices and margin are in a good range for trucking companies.

 


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