FTR’s Trucking Conditions Index for January dropped 34 per cent month-over-month to a reading of 7.8, reflecting positive impacts from continued drops in fuel prices being offset by weaker inputs from freight rates, load growth and capacity.
According to the research firm, it expects the index to maintain a high level and move upward again in late-2015.
“Despite the drop in the TCI from December to January, the index remains at a high level and is only slightly below the average score for 2014,” said Jonathan Starks, FTR’s Director of Transportation Analysis.
“A drop was expected, since the December TCI spike was caused by the rapid drop in diesel prices. Diesel prices have now bottomed in early February and are beginning to rise slowly, adding 11 cents at the start of March.
“Diesel’s impact on the TCI will slowly subside in 2015 but stay positive, unless the volatile energy markets jump higher. The capacity situation is much looser than last year but looks to have bottomed recently and has tightened the last three weeks, hitting 16.21 the first week of March.
“While this is down nearly 40 per cent from 2014, it has jumped nearly 60 per cent from its low in mid-February. I expect capacity to be more available during the spring shipping season since weather has been less disruptive and the HOS rollback has begun being implemented,” Starks said.