The highlight reel from Monday’s SONAR reports. For more information on SONAR — the fastest freight-forecasting platform in the industry — or to request a demo, click here.
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Lanes to watch
By Zach Strickland, director, Freight Market Intelligence
BALTIMORE to INDIANAPOLIS
Overview: Reefer carriers average almost $4.00 all-in rpm on round trip loads between Baltimore and Indianapolis.
Highlights:
- Reefer rejection rates jump up to 23.79% in the Baltimore market as carriers average $3.09 all-in rpm on the BWI–IND lane.
- Reefer rejection rates increased to 61.96% in the Indianapolis market as carriers averaged $4.84 all-in rpm on the IND–BWI lane.
- Indianapolis shippers increased reefer tender lead times to 3.88 days as capacity tightened, which is well below the national average of 4.39 days.
What does this mean for you?
Brokers: Capacity has tightened on reefer freight moving between Baltimore and Indianapolis, pushing rejection rates upward in both markets. Brokers should search the spot market for reefer freight that moves in both directions on the BWI–IND lane, helping shippers secure capacity to move their loads before the month’s end. Increase your bids for on-demand capacity and hold firm on your rates since market conditions are tightening in both markets.
Carriers: Reefer carriers with excess capacity in the Baltimore market should search the spot market for loads that deliver into the Indianapolis market. Last week, carriers averaged $3.09 all-in rpm on the BWI – IND lane, and $4.84 all-in rpm on the IND–BWI lane, allowing carriers to average $3.97 all-in rpm on the 1150 mile round trip run. Carriers should increase their bids this week since it’s the end of the month, and reefer rejection rates are trending upward in both markets.
Shippers: Indianapolis shippers need to increase their reefer tender lead times out past the national average since rejection rates have increased to 61.96%. As we approach the end of the month, carrier rates for on-demand capacity will increase, so shippers need to secure capacity for their loads as soon as possible. Monitor rejection rates for any shifts that would allow you to push carrier rates back down.
RICHMOND to DALLAS
Overview: Outbound volumes are building in Richmond, and are likely to explode in the lead up to the holidays.
Highlights:
- The Port of Norfolk’s weekly maritime import shipment volumes are likely to hit a new high in the weeks ahead, with large volumes moving to the Richmond market.
- The Headhaul Index in Richmond is up 26% w/w, but is positioned to climb further in the next week as imported goods move into the truckload market.
- Outbound tender volumes in Richmond are already up 26% w/w, and are expected to move significantly higher as import volumes surge into the Port of Norfolk.
What does this mean for you?
Brokers: The Richmond truckload market is likely to tighten significantly in the days ahead. Already, there has been a 26% w/w in outbound tender volumes, and with record import volumes expected to land into the Port of Norfolk in the next two weeks, demand for truckload capacity in Richmond is likely to grow close to (and possibly surpass) record highs as the holidays approach. Make sure you are getting your outbound Richmond loads booked earlier than usual, and be on watch for significant upward pressure on spot rates in the weeks to come.
Carriers: Stay firm on your rates, as you are likely to see pricing power shift further into your favor in the days and weeks ahead. A large percentage of import volumes into the Port of Norfolk move inland via drayage carriers into the Richmond market, so with record import volumes expected in the weeks ahead, outbound truckload volumes in Richmond stand to benefit and the increase in demand will put even more upward pressure on spot rates.
Shippers: Your shipper cohorts currently have tender lead times at 2.7 days, which have been steadily trending upwards over the last couple of weeks, but that is not likely to be sufficient for the increase in demand that is expected in the weeks ahead. In the tightest markets historically, shippers in Richmond have increased lead times to between 3 and 3.5 days to help offset tightening conditions in the outbound truckload market.
INDIANAPOLIS to GREENSBORO
Overview: Indianapolis’ rejection rate jumps over two points over the past week.
Highlights:
- Indianapolis’ outbound rejection rate has risen from 22.7% to near 25% over the past week.
- Lane specific rejection rates to Greensboro have nearly followed the exact same pattern as the overall Indianapolis market over the past month.
- Greensboro’s outbound rejection rate has fallen dramatically since this summer and is continuing to move lower into late October.
What does this mean for you?
Brokers: Expect a little more pressure on the spot market in this lane this week, with rejection rates increasing sharply and Greensboro easing. This lane should be a higher than average priority for finding coverage. Rates should be flat to slightly higher.
Carriers: Divert more capacity to the higher priced spot market in this lane this week with Greensboro rejection rates falling well below the national average. Greensboro has eased dramatically over the past year.
Shippers: Anticipate lower compliance this week in this lane. Keep lead times above three days when possible, knowing Greensboro is not as favorable of a destination as it once was for carriers.
Carrier Update presented by PowerFleet
Donnie Gilbert, director of Customer Solutions at FreightWaves, and Lead Economist Anthony Smith take a look at reefer rates nationwide in the Carrier Update presented by PowerFleet.
Headhaul in Harrisburg
By Travis Winnon, SONAR account executive
The late summer Harrisburg, Pennsylvania, capacity crunch seems to be easing a bit.
Although Harrisburg has been keeping up with national OTRI trends since they started dropping in March/April, the Harrisburg market temporarily bucked those trends and OTRI significantly increased starting in mid-August. This is most likely due to Harrisburg having a strong run of high HAUL numbers until the first of October.
Now that we are through Q3, the Harrisburg market has dropped from sustained HAUL levels of 75 or more back down closer to baseline. OTRI has also dropped and is now trending with the market average as well.
Focus on … reefer rates
By Zach Strickland
The national average for reefer outbound tender rejection rates bounced back upward last week to 37.88%, but then trended downward slightly to 37.42%. Reefer freight volumes have declined, but remain elevated at 2121.24 index points, which has kept capacity tight, allowing carriers to keep their rates elevated for on-demand capacity.
Shippers in the Fargo, Little Rock, Joplin, Fayetteville, Sioux Falls, Cedar Rapids, Des Moines, Indianapolis, Kansas City, Twin Falls, Pendleton and Jefferson City markets are struggling with reefer rejection rates over 60%, and rejection rates are over 50% in the Omaha, Dubuque, Columbia, Memphis, Rock Island and Salt Lake City markets.
Carriers will find the most reefer freight opportunities in the Ontario, Indianapolis, Fargo, Atlanta, Allentown, Twin Falls, Joliet, Lakeland, Harrisburg, Fort Worth, Fresno and Salt Lake City markets, which are the largest reefer markets by volume in the nation.
Shipper Update
Lead Economist Anthony Smith and Donnie Gilbert, director of Customer Solutions at FreightWaves, look at what to expect in the coming week in the Shipper Update.
