Trucking Conditions Index strong in December
FTR Associates’ December Trucking Conditions Index showed a good environment for the industry, the company announced this week, reporting that industry growth and overall economic growth will continue, despite what some analysts predict.
The Index notched an 8.83 in December 8.38 — setting its sights on 10, which FTR says would be a “signal that volumes, prices and margins are likely to be in a solidly favorable range for trucking companies.”
Anytime the Index is above zero, the market is a positive environment for trucking, FTR says.
The forecasting firm also predicted the Index will spike mid-year on market tightness spurred by changing regulations and growth in freight.
“The amount of capacity that will be affected by the rules is enough for us to expect an impact on rates; however, outside of spot rates, we are unlikely to see it show up in the data until the end of 2013,” says Jonathan Starks, director of transportation analysis for FTR. “If the economic recovery continues during 2014 we could see a very strong year for rate increases throughout the industry.”