Encouraging news about the health of the trucking sector emerged this week as the TCI (Trucking Conditions Index) compiled by FTR leaped to a 2015 high point in June. The industry is enjoying a solid year to date and these figures will surely stoke optimism for the remainder of the year. The dramatic improvement following some poor results in May is especially welcome.
The index spiked 56% in June to 7.66 a high water mark for the year to date and a result that underpins the overall balance in the trucking sector. Although the rate of freight growth had fallen in Q2 overall rates and margin remained healthy enough to see the index reach this level.
A steadily growing economy and fuel prices not spiking back upward have helped to cement the performance. Although freight growth slowed somewhat the industry still projects to see the sixth straight year of gains in 2015. Soft fuel prices have helped the logistics industry throughout the last nine months with only labor costs threatening to push rates upward in 2016, particularly if fuel prices rebound during the next year. Jonathan Starks, FTR’s director of transportation analysis expands on the results;
“It was a positive sign for trucking that the index rebounded in June. May was the lowest level in three years, but June was the best month so far in 2015. Continued declines in fuel prices during July and August should help to keep the index elevated as the industry prepares for the fall shipping season...the economy continues to chug along, and contract rates are still growing versus last year,”