The highlights from Monday’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.
Market watch
San Fransisco
San Francisco is experiencing the highest level of outbound volume activity since February.
Dry van outbound tender volumes have increased 46% in the past month. Northern California is also one of the largest reefer markets in the country, and produce is driving a 54% increase in outbound reefer tenders over the past 60 days. One of the primary drivers in this increased activity is produce like nectarines and broccoli, which are harvested in June and July.
This steady increase in both reefer and dry van volume has generated an uptick in San Francisco’s tender rejections, raising the Outbound Tender Rejection Index more than 200 basis points to 7.12%.
Indianapolis
After making a 30% recovery through the middle of July, outbound tender volumes fell significantly in the final week of July. A 12% drop in the past 10 days, while inbound freight remained lethargic, has resulted in a 52% drop in the Headhaul Index from 40.99 to 19.04.
The steep decline in outbound volumes also caused tender rejection rates to fall 300 bps to 6.48% overall, which is just north of the national rejection average of 6.18%.
Louisville, Kentucky
Much the same is happening 115 miles south of Indy, in Louisville. Outbound tendered loads fell 12% during July. However, there are signs of life as outbound volumes have been recovering, rising 8% week-over-week (w/w).
However, capacity has loosened considerably in Louisville. Since July 21, outbound tender rejections have plummeted 509 bps from 9.78% to a lowly 4.69%.
NTI as a point of reference
The National Truckload Index is a daily look at how spot rates in specific lanes hold up in comparison to the national average, giving carriers and brokers an idea of which lanes to gravitate toward or avoid.
Lane to watch: San Fransisco to Phoenix
Spot market rates from the Bay Area to Phoenix have remained consistent throughout the past three months. In just over one transit day, carriers can make only 2 cents less than the national average for spot rates, and TRAC Market Dashboard has awarded this lane a confidence score of 5 — indicating that this rate is consistent.
Once the run is complete, increased outbound volume will likely not leave you standing on a corner in Winslow, Arizona. In the last two weeks of July, outbound tenders for Phoenix have increased more than 20% — a 15.2% increase w/w.
