Trucking Conditions Slightly Improve; Overall Outlook Looks Weak

FTR’s Trucking Conditions Index reading for February improved to -0.21 from the January reading of -2.56. Improved volume and utilization and smaller increases in fuel costs mostly offset weaker freight rates to produce near-neutral market conditions for carriers in February.

However, the outlook is notably weaker than it was previously.

“With global tariffs and a full-fledged trade war against China, we have reduced our economic and freight forecasts due to expectations of higher inflation and interest rates and a weaker labor market coupled with a payback from elevated imports in the first quarter to avoid tariffs. With this change, we expect that near-term truck freight market conditions will be more challenging for carriers, postponing a sustained recovery until early next year,” says Avery Vise, FTR’s VP of trucking.

Key takeaways:

·       A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions.

Readings near zero are consistent with a neutral operating environment, and double-digit readings in either direction suggest significant operating changes are likely.