FTR’s Trucking Conditions Index (TCI) for July improved marginally to a reading of -1.03 from June’s -1.83 even though all freight-related factors were weaker than they were the month before. Offsetting that deterioration was a considerable slowing of diesel price increases after a big jump in June. Trucking is still in the doldrums, but the outlook is somewhat more favorable for carriers.

Avery Vise, FTR’s vice president of trucking, commented, “We do not see the market any stronger for carriers soon in the areas that matter most to them – freight rates and volume – but a recent preliminary revision of trucking employment estimates suggests tighter capacity than previously indicated. Meanwhile, other potential capacity stresses loom, including rising truck insurance costs and pressure on foreign drivers. Although our utilization forecast is still basically flat, the prospects have risen for improved freight volume to strengthen the truck freight market noticeably.”

Details of the July TCI are found in the September issue of FTR’s Trucking Update, published August 29. The September issue also revisits the potential for English language proficiency (ELP) and related issues to affect capacity in the wake of an August crash in Florida that has ratcheted up scrutiny. The Trucking Update includes data and analysis on load volumes, the capacity environment, rates, and the economy.

The TCI tracks the changes representing five major conditions in the U.S. truck market. These conditions are: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. The individual metrics are combined into a single index indicating the industry’s overall health. A positive score represents good, optimistic conditions. Conversely, a negative score represents bad, pessimistic conditions. Readings near zero are consistent with a neutral operating environment, and double-digit readings in either direction suggest significant operating changes are likely.