Trucking news and briefs for Friday, Sept. 22, 2023:
FTR's Trucking Conditions Index saw improvement in July over June with improved freight volume and capacity utilization.FTR
While improved from June, FTR’s index remained negative in July at -5.34, compared to June’s -6.29 reading. The firm said the improvement was a result of improved freight volume and capacity utilization, which offset weaker rates and higher fuel costs.
Carriers have continued to face challenging market conditions since July, and FTR noted surging fuel prices in August and September will send the TCI even lower in the near term. Aside from fuel cost volatility, the outlook for trucking conditions is little changed with only gradual improvement toward neutral readings by the third quarter of 2024.
“The overall truck freight market remains unfavorable for trucking companies, but the financial situation for smaller carriers in particular is tightening due to surging diesel prices,” said Avery Vise, FTR’s vice president of trucking. “Large numbers of small operations are exiting the market, and that exodus could accelerate if diesel prices continue to rise sharply.”
Vise noted that “larger carriers have absorbed much of that driver capacity, but truckload carriers are approaching a saturation point due to sluggish freight demand. Declining driver capacity could tighten the market modestly, but significant improvement for carriers will require stronger volume as well.”
Port drayage drivers, motor carriers and other port community members were given the opportunity to experience being behind the wheel of battery-electric or hydrogen fuel cell trucks.Port of Oakland
