FTR says most recent Truckers Conditions Index reading sets new record

The most recent edition of the Trucking Conditions Index (TCI), which was recently published by freight transportation consultancy FTR, turned in a new all-time high for a monthly reading.

According to FTR, a TCI reading above zero represents an adequate trucking environment, with readings above 10 indicating that volumes, prices and margin are in a good range for carriers.

The March 2021 TCI, which is the most recent month for which data is available, was 16.27, topping February’s 11.23 by slightly more than five points. This reading tops the previous record, of 16.17, which was set in October 2020.

FTR pointed to freight volumes, rates, and capacity utilization seeing gains in March, adding that the TCI is expected to remain in positive double-digit territory at least through the third quarter of this year, and also possibly turn in more record readings, too.

“March’s record TCI was especially remarkable considering that the index’s fuel component – the month’s lone weakness – was the most negative it had been since before the Great Recession,” said Avery Vise, FTR Vice President of Trucking, in a statement. “Robust demand and tight capacity no doubt are big operational headaches for many trucking operations, but those factors are supporting the best market conditions ever for carriers. We have yet to see signs of a loosening in driver capacity, so the near-term outlook is strong. A longer-term risk is that extraordinary levels of consumption – especially of durable goods – set the stage for softness in 2022 and beyond. In a sense, therefore, today’s supply chain shortages might prove beneficial by stretching out the period of solid consumer demand.”