FTR’s Trucking Conditions Index Fell Marginally to Begin 2012 But is Expected to Climb Throughout Year
Nashville, IN (March 5, 2012) FTR’s Trucking Conditions Index, as reported in the March 2012 Trucking Update, fell off marginally in January to a reading of 6.1. In spite of the lower index to start the year, FTR is forecasting a slow climb to strongly positive territory for trucking throughout 2012, with volumes and profits sufficient for investment for growth by year’s end. The strengthening US economy is expected to produce, at minimum, a 3.9% growth in truck freight which will be greater than overall GDP performance. The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates an adequate trucking environment with readings above 10 a sign that volumes, prices and margin are in a good range for trucking companies.
Larry Gross, Senior Consultant for FTR commented “The spike in the price of diesel due to Mideast tensions is one factor that has pulled the TCI down recently and downside pressure will continue until the price stabilizes. However, barring a significant economic slowdown from an external factor such as an actual Mideast confrontation, the fundamentals for the trucking industry are expected to continue to strengthen throughout the year, and we could well see a surprise on the upside if important sectors such as automotive and even housing continue to improve.”
The Trucking Update published monthly is part of FTR’s Freight Focus Series and reports data that directly impacts the activity and profitability of truck fleets. As part of the Trucking Update, FTR forecasts expected trends in this data and the probable short and long term consequences. The March Notes by the Dashboard Light explains FTR’s freight computations and includes a report on publicly-traded TL carriers’ Q4 performances. For more information on how to subscribe to the Trucking Update or other publications within the Freight Focus Series, send an email to hlile@ftrassociates.com or call Helen Lile at 1-888-988-1699, Ext. 1.
FTR Associates, located in Nashville, IN has been a leader in transportation forecasting for over 20 years. The company’s U.S. Freight Model collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups. FTR Associates’ forecast reports cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar. Specially designed reports are offered to participants in both industries to cover specific needs. For more information about the work of FTR Associates, visit www.ftrassociates.com or call Helen Lile at 888-988-1699 Ext. 45.