Trucking capacity utilization loosened in October to levels not seen since May 2020, improving conditions for shippers.
The FTR Shippers Conditions Index improved in October to a barely negative -0.3 reading, from -3.1 in September. This despite rising diesel prices in the month.
“A trend toward weakening diesel prices will aid shipper conditions in the months ahead along with weakening truck utilization, which should allow for additional capacity to open up and help stabilize shipper conditions for at least a period of time before things turn negative again in 2023,” said Todd Tranausky, vice-president of rail and intermodal for FTR.
FTR projects the index to remain somewhat volatile but mostly negative for shippers.