Research company FTR has issued a statement saying it is expecting an increasingly positive environment for US truckers going forward as regulatory drag may be leading to a capacity crisis in 2017.
While the company’s Trucking Conditions Index (TCI) for April fell nine per cent from the previous month – primarily due to the suspension of Hours of Service rules resulting in more available capacity and less pressure on rates – FTR is confident the market will continue to grow modestly.
“While still at a reasonably strong level, the TCI is indicating a moderating environment for carriers. Rate increases have pulled back over the last couple of months and, although still positive, will lessen year-over-year gains later in the year,” said Jonathan Starks, FTR’s Director of Transportation Analysis.
“Economic indicators still show a slow growth environment for both the economy and for freight. Load board data continues to show a return to normal activity following last year’s tight conditions. Shippers' desires to secure capacity should keep contract rates growing, but both contract and spot rates are susceptible to big drops if the economy is unable to accelerate after the weak start to 2015.”