U.S. Trucking Rates to Rise in Fall Shipping Season: FTR
BLOOMINGTON, IN — Freight transportation forecasting firm FTR reports that U.S. truck freight continues to show steady increases and the capacity situation is unlikely to loosen up any time soon.
“These good developments are partially offset by slower than expected growth in contract rates. Spot market rates are still elevated, although they have shown normal moderation during the summer months. We expect to see both spot and contract rates continue to rise as we get into the fall shipping season,” says Jonathan Starks, FTR’s director of transportation analysis.
FTR’s Trucking Conditions Index showed some positive movement in June after falling slightly during the prior two months.
The index rose 1.9 points from May, registering 7.64, reflecting an environment in which carriers are gaining market power but rates are struggling to keep up with cost inflation.
May and April readings were well below the 8.35 average seen during the first quarter of 2014.
“The headline number of four percent for gross domestic product growth (GDP) in the second quarter is getting plenty of news but the real number for getting a sense of true demand in this economy is the 'final sales' component of GDP,” Starks said. “It stood at 2.3 percent in the second quarter, well above the one-percent decline seen in first quarter, but noticeably below the 3.5 percent it averaged during the second half of 2013.”