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Conditions Will Remain Stable In 2016, Says FTR

Conditions Will Remain Stable In 2016, Says FTR

FTR Transportation Intelligence (FTR) recently issued a new report, forecasting trucking conditions for the year 2016. The new statistics were issued after the Trucking Conditions Index improved two points from December 2015 and reached 10.88 in January 2016.

FTR is an established consulting firm in the freight and equipment demand market with experience of over 250 years in the transportation industry. The company prides itself in qualitative analysis and modal-specific insights, to help industries evaluate market risks and opportunities. This premier firm also conducts private meeting sessions with senior management of enterprises to discuss their industry and growth opportunities.
FTR expects that 2016 for the trucking industry seems to be a calm year with less to no big changes in the status quo. The current conditions are tight but also allow adequate capacity to grow, as per the report data. But this is not set in stone, as the report also highlighted that the forecasts may change if a number of events take place, such as if the weather affects productivity more than that is expected or if the Federal Motor Carrier Safety Administration re-establishes the policies of controversial and productivity-weakening hours of service change.

Jonathan Stark, the chief operating officer at FTR, believes, “The trucking environment is still quite healthy,” and the industry seems to move forward at a better pace. He further added, “There is no doubt that growth has slowed for certain segments, and there are increasing uncertainties surrounding growth prospects for the U.S. economy.”

This means that trucking loading can be expected to continue growing at a stagnant pace of 3% for the upcoming year, but the research data also points out that conditions may heighten due to the decreased oil and fuel prices. This may come as good news for some carriers but will be an offset as it is most likely to decline spot market rates. But all in all, it will surely boost the nation’s economy by playing its part.

“Contract rates are still rising, albeit slowly, and there is very little capacity that is exiting the system,” said Stark. “Overall, the trucking industry seems to be in a relatively stable environment as we move into 2016.” – See more at: http://truckernews.com/conditions-will-remain-stable-in-says-ftr-p716-90.htm#sthash.1UgQmYx8.dpuf

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