Trucking conditions keep improving according to FTR's Trucking Conditions Index (TCI), and with new hours-of-service regs set to begin in July, that could benefit truckers.
The latest TCI report is showing another 2+ point increase month-over-month, bringing the index to a rather favorable 12.9 (readings above ten signal that volumes, prices, and margins are likely to be in a solidly favorable range for trucking companies).
FTR said that with the new hours-of-service regulations set to start in July, along with other regulations and improving freight will tighten capacity allowing for truckers to raise rates.
"The majority of indicators through the early part of 2013 have been solidly favorable for trucking. The lone outlier is truck freight rates, which have been stable but have shown very little growth since early 2012," said Jonathan Starks, director of transportation analysis for FTR. "We expect that situation to change once the new HOS rules go into effect in July. Industry capacity and demand for truck freight services are currently very close to equilibrium and it will not take much to move the needle to a supply shortage that should benefit truckers."
