The highlights from Wednesday’s SONAR reports are below. For more information on SONAR — the fastest freight-forecasting platform in the industry — or to request a demo, click here. Also, be sure to check out the latest SONAR update, TRAC — the freshest spot rate data in the industry.
Lane to watch: Columbus, Ohio, to Burlington, New Jersey
Overview: Even a lane with proven stability reacts to the freight shortage.
Highlights:
- Regardless of dropping from $5.26 a mile to $4.60 in the last two months, and now flatlining like many others at the moment, this lane remains consistent.
- Both markets have lane scores over 50, and outbound volume for Burlington falls into the Philadelphia market, which has remained so far this year at or above 200 basis points (bps) after bouncing back from its lowest dip since 2020.
- Should things begin to look up in the market overall, this lane will likely be one of the first to show the signs. It has only now begun to drop lower to 195 bps this month in relation to the freight shortage that the market faces today.
What does this mean for you?
These types of lanes that are consistent, paying and can be completed in one transit day are what keep a lot of the perishable consumer packaged goods stocked on the shelves of your local stores. While Columbus is a proven headhaul market, meaning that it is more of a distribution center, Philadelphia is shown to be more of a consumer center.
Watch: Shipper update
Lane to watch: Memphis, Tennessee, to Salt Lake City
Overview: Volume in both markets drop while the rate goes up.
Highlights:
- Outbound tender volume in Memphis has dropped below 200 bps for the first time since January of this year.
- However, the rate for this lane has seen more than a 20 cent increase since this time last month. This is a prime example of how operating costs are driving up the rates all the while volume is going down.
- It is also important to note that Salt Lake City is more of a backhaul market this time of year, likely making it difficult to find anything coming out on the spot market.
What does this mean for you?
The rising transportation costs that are occurring within the market along with the decrease in volume will likely begin to strongly affect the price of the goods being moved. Consumers may begin to see price increases in their weekly goods bought from local retail stores. Not to say that the rise in consumer goods will be entirely relatable to the freight market, but if the cost to move the goods from its origin to the consumer is rising, typically consumers will take the hit on the cost difference.