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.
  • ::COVID-19 COVERAGE::
  • 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
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • 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
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • 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
    • MODEX 2020
    • Upload Your Video
Home » Shippers to see manageable truck capacity conditions through rest of year, firm says
newsworthy

Shippers to see manageable truck capacity conditions through rest of year, firm says

July 25, 2015
DC Velocity Staff
No Comments

Users of rail and truckload motor carrier services will not feel much rate pressure for the rest of the year as moderating demand, lower diesel-fuel prices, and the suspension of federal regulations governing a truck drivers' hours of service keep capacity somewhat slack, according to data from consultancy FTR.

Each month, FTR publishes a "Shippers Conditions Index," which is a compilation of factors affecting the supply-demand environment for shippers. In May, the index came in at -3.1, which indicates a manageable, though less than ideal climate for shippers. A reading below zero is seen as somewhat suboptimal; a reading below -10 reflects a crisis situation with acute capacity shortages and higher rates in the offing. The index focuses on conditions impacting truckload and rail carload shippers.

FTR said truck shippers are benefitting from a December law suspending through September 30 two provisions of the Department of Transportation's 2011 rule governing a drivers' hours of service: requiring drivers to take their standard 34-hour rest breaks only once every seven days, and forcing them to include in their rest cycles two breaks between 1 a.m. and 5 a.m. over two consecutive days. The so-called restart language was expected to cut truck productivity from 2 to 4 percent by reducing the number of hours that drivers could be behind the wheel. The temporary suspension of the FMCSA's policies had led to an opening of truck capacity that might have otherwise disappeared.

Carload rates have been restrained by slower economic growth and continued weak demand for coal, which remains the railroads' largest commodity.

Jonathan Starks, FTR's director of transportation analysis, said the firm predicted the year-long reprieve for truck users in late 2014 amid the suspension of the hours-of-service rules and a slowing of the economy. However, Starks said the break for shippers will be temporary, noting that shipper conditions will worsen in 2016 as the impact of government rules, such as the phasing-in of the use of electronic logging devices and perhaps the reinstatement of the hours-of-service regulations, put many smaller fleets out of business and lead to a tightening of capacity.

In addition, the U.S. economy will continue to grow despite currently disappointing data, with accelerating freight demand soaking up capacity and putting upward pressure on truck rates, Starks said.

Transportation Trucking Truckload Less-than-Truckload
KEYWORDS FTR
  • Related Articles

    Monthly truck-conditions index fell in March to lowest point since '11, firm says

    Shippers see trailer pools as solution to tight capacity, Transfix says

    FTR: shippers see improving freight transportation conditions

Recent Articles by DC Velocity Staff

Report: Global TMS revenues to nearly double by 2025

E-commerce fulfillment squeezes retailers’ profit margins, Manhattan Associates says

Logistics-as-a-Service platform expands with $2.5 million funding round

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

Report Abusive Comment

Most Popular Articles

  • IBM survey says digitalization trends will sweep trucking industry by 2030

  • Gartner survey signals increased investment in resilience over the next two years

  • Truck driver hiring pool tightens to lowest point in three years, ACT says

  • What Level of Automation is Right for Your Warehouse?

  • Growing up … and up and up: interview with Sam Bertram

Now Playing on DCV-TV

D92f0dd1 a98c 434a 9e17 30b63ee72c90

Automated Pack-out and Print-Apply System for thredUP

DCV-TV 4: Viewer Contributed
SilMan Industries designed and implemented a mixed polybag-carton system, including automated print and apply, in a new regional Fulfillment Center for thredUP, one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes, and accessories.The Situation Secondhand clothing and online...

FEATURED WHITE PAPERS

  • Using innovation to manage peak seasonal demand

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

View More

Subscribe to DC Velocity Magazine

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

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing