Overview of Trucking Business Indicators
CCJ’s Indicators compile the most recent insights on trucking industry metrics, including rates, freight, equipment, the economy, and more.
Positive Momentum in Trucking Conditions
The latest Trucking Conditions Index from FTR showed encouraging trends for carriers in February. This monthly index indicates a positive shift in market conditions.
Forecast for Rate Growth
FTR anticipates that the Trucking Conditions Index will continue to rise throughout the year due to tightening capacity in the trucking sector, suggesting potential for increased rates. However, FTR cautions that significant growth in contract rates is not expected for at least six months.
Economic Outlook for 2017
Jonathan Starks from FTR remarked, “The economic outlook has stabilized for 2017, with freight growth expected to accelerate compared to 2015 and 2016. We have lower expectations for productivity challenges from regulations, but the anticipated growth in freight should maintain high utilization rates throughout the year.” He added that while contract rates may begin to show year-over-year improvements by Q2, substantial increases might not be visible until later in the year. Spot rates have increased slightly but remain only a few percentage points higher than last year.
Job Growth in Trucking Industry
According to the Department of Labor, the for-hire trucking sector added 4,700 jobs in March, adjusted for seasonal fluctuations. This gain follows a notable increase in February, where nearly 10,000 jobs were added.
Overall Employment Context
These job additions in trucking occurred during a generally slow month for national employment, with the U.S. economy adding only 98,000 jobs, per the Labor Department’s report. The for-hire trucking sector’s employment now stands at 1.4768 million, marking nearly 25,000 additional jobs compared to the same month last year.
Other Employment Statistics
In March, the construction industry created 6,000 jobs while manufacturing added 11,000 jobs. Conversely, the transportation, trade, and utilities sector, which encompasses truck transportation jobs, experienced a decline of 27,000 jobs during the same month.
