FTR Associates on Monday, July 9, announced that its Trucking Conditions Index for May fell nearly 4.0 points from the previous month to a reading of 5.1, its lowest level in six months. April’s strong performance was not sustained, reflecting soft pricing results for the first quarter of 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, FTR senior consultant. “Although carriers have been very disciplined thus far during the recovery by 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.”