Trucking news and briefs for Thursday, Sept. 21, 2023:
Market conditions for trucking companies in July were slightly better than in June, according to FTR’s latest Trucking Conditions Index report.
A negative reading in this index means market pressure is in favor of shippers, generally speaking.FTR
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 is for 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" many owner-operators who moved from running with authority or parked their units in search of company work for now, but truckload carriers are approaching a saturation point given "sluggish freight demand." Falling overall numbers of working truckers "could tighten the market modestly, but significant improvement for carriers will require stronger volume as well.”
[Related: Low diesel fuel inventory, volatile pricing likely to boost carrier exits]
