Rising gas costs, weaker freight charges, and better financing prices mixed to weaken trucking circumstances in June, trade analyst FTR experiences.
Its Trucking Situations Index (TCI) dropped to -3.36, marking the primary time the index was in detrimental territory for 2 consecutive months since April/Might 2020.
“We would nonetheless see some optimistic outliers within the TCI – particularly if diesel costs proceed to fall sharply – however the truck freight market has hit an inflection level,” mentioned Avery Vise, FTR’s vice-president – trucking.
“Modestly detrimental readings doubtless would be the norm somewhat than the exception, though we aren’t forecasting that the underside will drop out. We nonetheless anticipate that freight quantity will develop barely this 12 months and subsequent and that capability utilization will backside out above the 10-year common. Nonetheless, this forecast doesn’t presume an financial recession, so draw back dangers are substantial.”