Trucking conditions continue to weaken

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Rising gas costs, weaker freight charges, and better financing prices mixed to weaken trucking situations in June, business analyst FTR experiences.

Its Trucking Situations Index (TCI) dropped to -3.36, marking the primary time the index was in detrimental territory for 2 consecutive months since April/Could 2020.

“We’d nonetheless see some constructive outliers within the TCI – particularly if diesel costs proceed to fall sharply – however the truck freight market has hit an inflection level,” stated Avery Vise, FTR’s vice-president – trucking.

“Modestly detrimental readings possible would be the norm fairly than the exception, though we aren’t forecasting that the underside will drop out. We nonetheless anticipate that freight quantity will develop barely this yr and subsequent and that capability utilization will backside out above the 10-year common. Nevertheless, this forecast doesn’t presume an financial recession, so draw back dangers are substantial.”

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