Strong capacity increased freight in February

FTR’s Trucking Conditions Index (TCI) rose in February due to strong capacity utilization and freight rates along with stable freight volume. This growth offset surging diesel fuel prices which finally eased in late March after several months of increases.

“You could hardly devise better market conditions for trucking companies as demand is robust in both the consumer and industrial sectors and lingering labor-related challenges due to the pandemic are keeping a lid on capacity,” commented Avery Vise, FTR’s vice president of trucking. “We do not expect any noticeable easing in this environment until this fall, and even when that occurs, we do not anticipate that conditions will stabilize as quickly as they did in late 2018 and 2019.”

FTR expects these gains to continue beyond Q2 and remain in positive territory through 2022.

“The outlook is not without risks, including shortages and disruptions in the supply chain,” Vise added. “However, even those risks arguably have an upside by potentially bolstering freight demand over a longer period.”