ECONOMIC WATCH: Trucking conditions hit worst levels ever in April – Truck News

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BLOOMINGTON, Ind. – U.S. trucking conditions hit their worst ever
levels on the FTR Trucking Conditions Index in April, at -28.66 reflecting the
contraction due to the Covid-19 pandemic.

The previous low point was -16.08 in September 2008. Cost of fuel
was positive for truckers, but demand, utilization and rates were in extreme
negative territory, FTR reported.

The good news, however, is that FTR says April represented the
bottom. But the pace of recovery remains uncertain. FTR projects its Trucking
Conditions Index will improve sharply while remaining in negative territory
through early 2021.

(Source: FTR)

“Spot market load
volumes have recovered well since bottoming out in mid-April, although the
recovery seems to have stalled out a bit,” said Avery Vise, FTR’s vice-president
of trucking.

“The
unprecedented depth and speed of the contraction and the severity of disruption
in supply chains and freight networks will make it difficult to assess in the
short run whether higher volumes are merely temporary or part of a sustained
rebound. The critical question is what happens once consumers and businesses
exhaust the trillions of dollars that Washington has pumped into the economy to
offset the pandemic’s financial consequences. All that we can be sure about is
that market conditions will not be as bad as they were in April.”

Credit: Source link

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