TCI touched its all-time high in the month of May, 16.82. This topped march figures of 16.17.
Freight Transportation Consultancy (FTR) issued the new edition of the Trucking Conditions Index (TCI). A TCI reading which is above zero implies an adequate trucking environment, whereas a reading above 10 signifies that the volumes, prices are in a good range for carriers. In the month of September, the TCI stood at 11.79, up from the corresponding month of August data of 11.63. The July TCI reading was 10.78, trailing June and May, at 12.61 and 15.72, respectively.
TCI touched its all-time high in the month of May, 16.82. This topped march figures of 16.17. In the month of September, the freight rates continued to show growth, signaling the caution that freight volume and capacity utilization were not as beneficial to carriers as they were in the month of July and August, according to FTR. However, it can be noted that TCI forecast looks strong in the due course of 2021.
The transport market seems to be in favor of the carriers due to changing consumer spending patterns and effects of supply chain disruptions caused by the COVID-19, Avery Vise, FTR vice president of trucking, in a statement said.
The transport market seems to be in favor of the carriers due to changing consumer spending patterns and effects of supply chain disruptions caused by the COVID-19, Avery Vise, FTR vice president of trucking, in a statement said.
A stronger recovery in the driver capacity can be witnessed from the latest payroll employment data for truckers. However, the sudden spurt in small authorized carriers continues to contribute significantly to reaching pre-pandemic levels. It is expected that struggles in truck production and material shortages will limit the capacity in the coming months.
The deciding factor will be whether consumer spending remains robust post-holidays. Market conditions are still robust for carriers despite some modest easing over the past three months indicated from TCI record posted in April. For the month of July, a softer rate and utilization environment along with a slightly higher cost of capital were offset by a stronger freight demand. Basically, TCI tracks the changes on five parameters in the U.S. truck market. These are freight volumes, freight rates, fleet capacity, fuel price, and financing.
Then, standalone metrics are combined into a single index indicating the industry overall health. positive score indicates a good, optimistic condition. On the other hand, a negative score represents bad pessimistic conditions. Readings near zero are consistent with a neutral operating environment. Readings that are double-digit indicate crucial operating charges are likely.
Readings that are double-digit indicate crucial operating charges are likely.