Truckload Capacity Inches Up in Q4 but Remains Near Historic Lows

Despite continued capacity cuts by trucking companies amid rising spot rates and volatile
demand, large US truckload carriers managed a slight uptick in the Truckload Capacity Index
(TCI) by putting additional trucks on the road late last year.

The quarterly TCI by the Journal of Commerce increased sequentially by 1.1 percent, rising
from 72.4 percent in the third quarter to 73.5 percent in the fourth. Collective capacity among
the large carriers included in the index also grew by 1.5 percent.

Most of the additional trucks were not deployed for one-way truckload services, but instead
allocated to higher-paying dedicated and specialized operations.

Carriers, however, remain reluctant to add more trucks to take advantage of higher spot market
rates. The 1.1 percent increase in the fourth quarter still marks the second-lowest TCI level
since the index recorded its 19-year low in the fourth quarter of 2013.

After falling to 73.8 percent in 2013, the index climbed steadily to a peak of 93.2 percent in the
second quarter of 2022 before sliding again over the next three years.

The latest index indicates that large carriers are maintaining available capacity despite volatile
supply and demand, while many truckload companies continue to shrink fleets or shift toward
specialized freight services.