Index on trucking conditions was affected by lower freight rates and load growth, despite the positive impact of lower fuel prices.
FTR’s Trucking Conditions Index for January dropped 34 percent month-over-month to a reading of 7.8.
The index reflects positive impacts from continued drops in fuel prices being offset by weaker inputs from freight rates, load growth and capacity.
FTR said it expects the index to move upward again in late 2015 as the industry anticipates another round of regulatory drag. The Trucking Conditions Index is impacted when capacity utilization or prices change.
“Despite the drop in the TCI from December to January, the index remains at a high level and is only slightly below the average score for 2014,” said Jonathan Starks, FTR’s director of transportation analysis. “A drop was expected since the December TCI spike was caused by the rapid drop in diesel prices. Diesel prices have now bottomed in early February and are beginning to rise slowly, adding 11 cents at the start of March. Diesel’s impact on the TCI will slowly subside in 2015 but stay positive, unless the volatile energy markets jump higher.
“I expect capacity to be more available during the spring shipping season since weather has been less disruptive and the (hours of service) rollback has begun being implemented,” Starks added.
FTR trucking index drops in January
