All Truck Transportation Index Numbers Look Positive for 2013

  • All Truck Transportation Index Numbers Look Positive for 2013

    The Freight Transportation Research Associates (FTR) have good things to say about all truck transportation. The state of the industry is good and getting better.

    According to analysts, the Index of 8.38 in December points to an upward trend that could hit 10 soon. According to FTR, analysts that say all truck transportation is going on a downward slide are not accurate.

    FTR’S Director of Transportation Analysis, Jonathan Starks, said “despite recent commentary from some in the industry, we believe that the fundamentals for growth remain intact and continue to expect a significant event occurring in July when the Hours-of-Service changes are set to be implemented.” Mr. Starks also said that outside of spot rates, the industry won’t see actual data reflecting how capacity is reflected until the end of the year.

    The Trucking Conditions Index (TCI) should show a significant rise by the middle of the year, according to FTR. The TCI takes into account several factors that affect all truck transportation. While any rating above zero means that truckers are experiencing a positive environment, once levels hit 10 and above, margins, volumes and prices are at a level that where all trucking companies should be seeing positive results.

    The affect that the National Biodiesel Board’s (NBB) decision to shoot for a 10 percent share of on-road diesel market by 2022 will have on TCI is unknown at the moment. The goal is certainly ambitious, but experts say it’s not unattainable.

    The NBB said it is working on diversifying options when it comes to energy for all truck transportation. The NBB revealed the plan during the Biodiesel Conference and Expo in Las Vegas recently and they’re calling it 10X22.

    NBB said in a news release last week that “it is not about replacing every drop of petroleum; it is about continuing to diversity transportation energy so we can meet our needs affordably and sustainably.” NBB CEO Joe Jobe said the role of biodiesel is taking a bigger role in all truck transportation and that it will help to protect truckers and the U.S. economy that are at risk from unstable energy markets that become even more unstable due to politics and “totalitarian regimes.”

    While the five percent goal set for 2015 in 2005 was considered aggressive, given the billion gallons of biodiesel produced from 2011 to 2012, the 10X22 goal seems very reachable.

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