We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • Parcel Forum 2022
    • MODEX 2022
    • Upload Your Video
Home » Trucking index jumped again in February; higher freight rates seemingly on way
newsworthy

Trucking index jumped again in February; higher freight rates seemingly on way

April 11, 2013
DC Velocity Staff
No Comments

A monthly index of economic conditions in the trucking industry continued its upward move in February, rising more than two points from January's levels to 12.9 percent, according to FTR Associates, a transportation consulting firm that publishes the index.

The index, a combination of multiple data points that measures real-time and future industry conditions, is now in a range that reflects a solidly favorable environment for truckers, according to Bloomington, Ill.-based FTR. Any reading above 10 indicates increasing volumes, prices, and margins, according to the index.

Freight rates have remained steady but have shown little increase since 2012, despite the more favorable economic climate for truckers, FTR said. However, that will change in the second half of the year as the federal government begins its scheduled July 1 enforcement of the new rules governing a driver's hours of service.

The rules, which industry groups have challenged in court, are expected to result in a tightening of capacity as fewer trucks and drivers operate on the nation's highways. If upheld, the rules are expected to shave anywhere from 3 to 7 percent off truck capacity. This reduction will come at a time when qualified drivers are not easy to find, truckers are replacing but not adding rigs to their fleets, and freight demand may finally be growing in a sustainable way.

Shippers and truckers have sued the Federal Motor Carrier Safety Administration (FMCSA), the sub-agency of the Department of Transportation implementing the rules. The groups argue that the regulations in effect for several years effectively balance safety and commercial needs and that the new rules will disrupt established supply chains and actually jeopardize safety.

The impact of the new rules, combined with the continued pickup in demand, will allow truckers to push up freight rates. FTR, for its part, believes enforcement will begin July 1 as planned.

"Industry capacity and demand for truck freight services are currently very close to equilibrium," said Jonathan Starks, the firm's director of transportation analysis. "It will not take much to move the needle to a supply shortage that should benefit truckers."

The index's upward movement is expected to peak during the summer, FTR said. However, it should remain strongly positive for some time, the firm added.

Transportation Trucking
KEYWORDS FTR
  • Related Articles

    Freight rates dipped again in December, but rebound may be near for trucking cycle

    Freight prices surged in October amid higher demand, rising fuel, hurricanes, index finds

    FTR trucking index hit all-time high in February; more gains seen

Recent Articles by DC Velocity Staff

Freight sector missed the boat on strong U.S. economy in Q3 and Q4, FTR says

Sloppy thieves botch trailer heist

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Fred Smith is not worried about Amazon

  • Outlook 2023: What’s in store for logistics/supply chain?

  • Ports, maritime operators see tide turning as ocean freight tsunami subsides

  • In Person: Steve Beverly of Penske

  • InPerson interview: Rob McKeel of Fortna

Now Playing on DCV-TV

89cfed30 8aac 4284 960d c8c8c1886e16

Have you checked your read rate lately?

DCV-TV 4: Viewer Contributed
No reads. Unaccounted for boxes. Boxes sent to the wrong place. A logistics nightmare! But this nightmare doesn’t have to come true. SICK’s linear line scan camera is what dreams are made of for your logistics operations. And if you’re worried about motion and vibration from conveyor belts...well, there’s no reason...

FEATURED WHITE PAPERS

  • The five best applications for robotic lift trucks in warehouse environments

  • Fulfillment Facility Improved Efficiencies by 4x

  • 3PLs: Complete Orders Faster with Flexible Automation

  • Reusable Packaging for the New Wave of Supply Chain Automation

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing