"Conditions for trucking are positive in spite of sluggish growth in the overall economy because manufacturing, which generates freight, is growing much more rapidly than services," said Eric Starks, president of FTR Associates.
His comments came as his company's Trucking Conditions Index edged higher in August to a reading of 2.3. The index is a compilation of factors affecting trucking companies; and the August reading, which is the sixth consecutive reading in positive territory, reflects a healthy environment for trucking. Strong manufacturing increases have generated truck freight above GDP. Expected freight growth of 4 percent, limited driver capacity and fleet downsizing will keep the index in positive territory through 2011.
The August Trucking Conditions Index and the current status of factors affecting the trucking industry are reported in the October issue of FTR's Trucking Update (www.ftrassociates.com/truckingupdate).
"The freight growth along with capacity shortages we have been forecasting bodes well for trucking companies over the next couple of years at a minimum," Starks said. The October Trucking Update includes commentary concerning the worsening driver shortage in a high unemployment environment.
The Trucking Update published monthly is part of FTR's Freight Focus Series and reports data that directly impacts the activity and profitability of truck fleets. The company's U.S. Freight Model collects and analyzes all data likely to impact freight movement and is based on specific characteristics for over 200 commodity groups. FTR Associates' forecast reports cover trucking and rail transportation and include demand analysis for commercial vehicle as well as railcar.
