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FTR: Capacity Tight, but Rates Still Poised to Rise

Analysts at FTR are reporting tighter freight capacity for shippers this year, but believe that “regulatory drag” will likely be slowed under the Trump Administration.

“The economy is beginning to show signs of some acceleration. Manufacturing is attempting to shrug off its inventory woes, and business confidence has certainly improved, although it hasn’t translated into direct investment yet,” says Jonathan Starks, Chief Operating Officer of FTR. “If sustained, this would raise the outlook for freight demand this year and into next year. While that would cause capacity to tighten, the tailwind is that the regulatory environment isn’t expected to have as dramatic an impact as initially thought. Costs, especially rates, are still expected to see increases this year after a relatively weak rate environment in 2016.”

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