The TCI has disintegrated within the span of September, all towards a -2.35 read from a relatively neutral -0.25 in August. There are of course, weak freight rates with an end to the sudden drop in diesel prices, with the key factors in the change that would be close to August. According to FTR, those negatives had additionally been in-part offset by stronger freight demand and capacity utilization. It’s definitely surprising.
Weak freight rates and a conclusion to the drop in diesel prices, tend to be the key factors towards the change similar to August. However, the negatives have been a little offset by strong capacity utilization and freight demand.
The huger negative contributor to the September TCI ended up being the cost of capital, while the Federal Reserve battles inflation with high interest rates. Yet, financial costs had been a little more negative in the September Factors versus August.
According to FTR, the index has stayed negative in every but one month since February, with double-digit TCI readings.
Market conditions are going to stay a little negative for carriers in months at the very least throughout 2023, yet that weakness isn’t likely to mirror the strength that one could expect from 2020 or even early 2022.
Of course, this doesn’t mean trucking has totally gone down. There’s plenty consensus on the matter, and for the most part, it’s met with shock! Carriers have actually been well-endowed enough to handle business greatly enough during the golden days that they can even stay afloat under more unfortunate circumstances.
It’s definitely a progression that would excite many. So it’s a hopeful circumstance that likely TCI would be able to fluctuate considering more positive times on the way. That is the only way one trucking company can make the difference for hundreds more. Diesel gas is certainly an issue in the trucking community.
TCI is able to track any and all changes that represent five huge conditions in the U.S. truck market. This includes freight volumes , fleet capacity, freight rates, fuel prices and financing costs. The metrics get combined into single indexes to show off the industry overall health. Metrics get combined in specific to track the market conditions that therefore influence fleet behavior. The consecutive dropping of the numbers is enough cause for concern in the trucking community. So it’s wise to be aware enough to avoid the pitfalls that lower the TCI.