April marked strongest month on record for carriers, analysts report

From Overdrive Online.

Following a record-setting month in March, FTR’s Trucking Conditions Index (TCI) for April hit another record-high of 16.82, surpassing March’s record of 16.27.

Although most market factors were not quite as strong in April as they were in March, a reversal of March’s higher diesel prices improved overall trucking conditions, FTR says.

The relief in fuel costs was short-lived, but FTR expects solid freight demand coupled with high-capacity utilization and robust freight rates to keep trucking conditions strong in the near term and at least in positive single digits well into 2022 and perhaps beyond.

“We have yet to see signs that the driver capacity situation is changing, and May’s weak payroll jobs data for trucking is one indication,” said Avery Vise, FTR’s vice president of trucking. “Over the next few months, one potential constraint – generous unemployment benefits – will end. While those benefits likely contribute to the hiring challenge, we are skeptical that their demise will fundamentally change the dynamic. Given robust competition for labor – job openings in the economy are at an all-time high – trucking’s capacity challenge could linger longer than usual. One signal we are watching closely is the spot market. If rates and volumes begin to ease, that could indicate a balancing of freight demand and route guide capacity.”

FTR calculates its Trucking Conditions Index using five major conditions in the U.S. truck market – freight volumes, freight rates, fleet capacity, fuel price, and financing.

See the complete article at Overdrive Online.