FTR's Trucking Conditions Index falls significantly in May

FTR's Trucking Conditions Index for May, as reported in the July 2012 Trucking Update, fell markedly from the previous month to a reading of 5.1, down nearly 4.0 points. April's strong performance was not sustained and the TCI has dropped to the lowest level in six months. This relatively weak performance at this time in a recovery reflects soft pricing results for Q1 2012 and the moderate levels of driver shortages. The Trucking Conditions Index is a compilation of factors affecting trucking companies. Any reading above zero indicates a positive environment for truckers with readings above 10 a sign that volumes, prices and margin are in a solidly favorable range for trucking companies.

"The weakening recovery is making itself felt in lackluster growth in truck freight demand," said Larry Gross, Senior Consultant for FTR. "Although carriers have been very disciplined thus far during the recovery, choosing not to add capacity, the lack of freight volume growth is constraining the industry's ability to raise rates. We still expect industry conditions to slowly improve from here as we progress into the second half of the year."

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 July Notes by the Dashboard Light discusses Europe and the impact it has on the US economy.