Truck Freight Capacity Dips in June

Truck freight capacity dipped in June, reflecting a relatively weak freight environment, according to the FTR Associates’ Shippers Conditions Index.

The SCI in June fell slightly to a reading of -8.1. Readings below zero indicate a less-than-ideal environment for shippers and readings below 10 signal conditions are approaching critical levels, according to FTR.

“The June SCI does not yet reflect the new hours-of-service regulations that are now the law of the land. We estimate that the onset of these new regulations will eventually pull about 3% of truck capacity out of the system,” Lawrence Rross, a senior consultant for FTR, said in a statement.

“Offsetting this removal of capacity is the currently weak freight environment due to an economy which is growing slower than we had expected (or hoped). The net effect is to postpone significant tightening of capacity into later this year or even next year, depending on what happens with the economy,” he said.