Tender rejection charges contact double digits briefly

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(Photograph credit score: Jim Allen/FreightWaves)

This week’s FreightWaves Provide Chain Pricing Energy Index: 40 (Shippers)

Final week’s FreightWaves Provide Chain Pricing Energy Index: 40 (Shippers)

Three-month FreightWaves Provide Chain Pricing Energy Index Outlook: 40 (Shippers)

The FreightWaves Provide Chain Pricing Energy Index makes use of the analytics and information in FreightWaves SONAR to investigate the market and estimate the negotiating energy for charges between shippers and carriers.

This week’s Pricing Energy Index relies on the next indicators:

Figuring out any important adjustments in route round holidays is a problem and this yr isn’t any totally different. In actual fact, it might be more difficult to determine this yr in contrast with any latest yr as each the Christmas and New Yr’s holidays fall on a Wednesday, which creates elevated operational challenges for shippers.

<em>SONAR: Outbound Tender Volume Index — Seasonality View: 2024 (white) and 2023 (pink)</em><br><em><strong>To learn more about SONAR</strong>, </em><a href="https://gosonar.com/sonar-demo-request?utm_source=sonar_website&utm_medium=global_header&utm_campaign=sonar_website_traffic&utm_content=demo_request" rel="nofollow noopener" target="_blank" data-ylk="slk:click here;elm:context_link;itc:0;sec:content-canvas" class="link "><strong><em>click here</em></strong></a><em><strong>.</strong></em>
SONAR: Outbound Tender Quantity Index — Seasonality View: 2024 (white) and 2023 (pink)
To study extra about SONAR, click on right here.

The Outbound Tender Quantity Index (OTVI), a measure of nationwide freight demand that tracks shippers’ requests for trucking capability, is down over 31% previously week, however the index is a seven-day transferring common and holidays successfully create zero days within the transferring common. The decline this yr was extra important than it has been lately, however that’s doubtless extra a results of timing of the vacations than a basic shift in volumes.

After the primary week of January, the route by which volumes are headed shall be clearer. The problem for the market is that the primary two months of the yr are historically the softest intervals for freight, and there’s nothing to recommend that there shall be stronger volumes throughout this time.

<em>SONAR: Contract Load Accepted Volume – Seasonality View: 2024 (white) and 2023 (pink)</em><br><em><em><strong>To learn more about SONAR</strong>, </em><a href="https://gosonar.com/sonar-demo-request?utm_source=sonar_website&utm_medium=global_header&utm_campaign=sonar_website_traffic&utm_content=demo_request" rel="nofollow noopener" target="_blank" data-ylk="slk:click here;elm:context_link;itc:0;sec:content-canvas" class="link "><strong><em>click here</em></strong></a><em><strong>.</strong></em></em>
SONAR: Contract Load Accepted Quantity – Seasonality View: 2024 (white) and 2023 (pink)
To study extra about SONAR, click on right here.

Contract Load Accepted Quantity (CLAV) is an index that measures accepted load volumes transferring beneath contracted agreements. In brief, it’s just like OTVI however with out the rejected tenders. Taking a look at accepted tender volumes, the decline is just like OTVI, falling by over 31% previously week.

<em>SONAR: Outbound Tender Volume Index – Weekly<em> Change</em></em><br><em><em><strong>To learn more about SONAR</strong>, </em><a href="https://gosonar.com/sonar-demo-request?utm_source=sonar_website&utm_medium=global_header&utm_campaign=sonar_website_traffic&utm_content=demo_request" rel="nofollow noopener" target="_blank" data-ylk="slk:click here;elm:context_link;itc:0;sec:content-canvas" class="link "><strong><em>click here</em></strong></a><em><strong>.</strong></em></em>
SONAR: Outbound Tender Quantity Index – Weekly Change
To study extra about SONAR, click on right here.

As anticipated when there’s a important decline in tender volumes on the nationwide degree, almost all the freight market skilled declines. Of the 135 freight markets, simply 4 of the markets skilled quantity progress, although the will increase are solely in additional rural freight markets.

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In a constructive signal for the freight market, volumes out of Los Angeles outperformed the nationwide common, falling by 29%. It’s the identical story in Atlanta, the place volumes fell by 29% over the previous week.

The one 4 markets that skilled will increase had been: Grand Junction, Colorado; Fargo, North Dakota; Fast Metropolis, South Dakota; and Bristol, New Hampshire. The will increase assorted from 1% greater to 330% greater w/w.

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