Trucking news and briefs for Tuesday, Oct. 25, 2022:
FTR's Trucking Conditions Index inched back toward a neutral reading in August, up slightly from July.FTR
The marginally stronger trucking conditions were due almost exclusively to falling diesel prices, FTR said. The largest negative factor was financing costs as the Federal Reserve continued to battle inflation through sharp increases in the federal funds rate.
Meanwhile, freight market dynamics were slightly weaker in August than in July, although freight volume was still a tiny positive contributor to the index calculation.
FTR still sees trucking market conditions in a period of moderate weakness at least through 2023.
“Although truck freight dynamics are softening broadly, smaller carriers likely will see a disproportionate negative impact in overall financial conditions due to sharp increases in financing costs and great volatility in diesel prices,” said Avery Vise, FTR’s vice president of trucking. “Because small carriers are less likely to have reliable fuel surcharges in place, they typically feel the effects of changing diesel prices more profoundly than larger carriers do.”
Vise said that while that situation helped in July and August with falling diesel prices, “it will turn out to be a big negative in October at least.” He added that small carriers will also be less likely than larger carriers “to achieve comfortable financing terms for equipment and other needs for capital.”
