Statistics released last week by FTR, a freight transportation consulting group, indicate that trucking will continue to see an upswing as the transport mode of choice over cargo container, air and rail freight.
While the Trucking Conditions Index (TCI) was down two points to 5.91 in April — the most recent month for which data is available — that blip was simply a short term fluctuation. Actual trucking is up and is expected to remain strong, according the report.
Jonathan Starks, director of transportation analysis for FTR, said that despite the fact that trucking rates are rising and truckload capacity remains tight, truck utilization in the US was expected to top 98% for the foreseeable future.
“The TCI took a modest hit during April but is still solidly positive and should stay higher for most of 2014,” Starks said in a prepared statement. “One ofthe main reasons for that comes from the pricing environment. Spot rates have leveled off but are still well above levels seen last year at this time. Contract rates,on the other hand, move up and down much slower as new contracts get slowly implemented over time. Trucking looks to be on very solid footing and should continue to show growth throughout 2014.“
Yet at the same time, trucking costs are increasing, thanks in part to a tightening of federal regulations over the industry and the shortage of qualified drivers.
Rosalyn Wilson, senior business analyst with Delcan Corporation, said training new drivers will take time and money.
“New equipment and drivers have been added to the trucking fleet and both are increasing costs substantially,” Wilson said. “The driver shortage is pushing up the cost of recruiting, training and retaining drivers.”