Truckers gaining latitude to raise rates: FTR

NASHVILLE, Ind. – FTR Associates is reporting increasingly tightening conditions for hauling capacity.

The truck Market analysts’ Trucking Condition Index rose to 7.1 in December, the highest level yet recorded during the current recovery.

Current conditions and strong prospects going forward are expected to steadily raise this index – possibly to a new record in early 2012.

The index is a compilation of factors affecting trucking companies, and the current readings as well as the forecast for the next few years bodes well for increased vehicle utilization and solid pricing power for carriers through the period.

FTR expects the delays in implementation of hours-of-service and CSA regulations to push out the peak shortage timing to early 2012.

"We have been forecasting steady improvements for the trucking sector. Conservative fleet attitudes towards adding drivers and equipment combined with the continuing growth of freight means that trucking companies should see their equipment utilization nearing 100 percent later this year," said FTR President Eric Starks.

As a result, carriers will have greater latitude to both raise rates and to be more selective with regard to freight, he added.

"Despite the impact from regulatory drag being moved further out, improving economic conditions will help make 2011 a good year for trucking companies."