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.
In a recent change of the traditional way of doing things through SONAR Sightings with lanes to watch, there will be a slight change in the presentation of the data. It will begin with a market to watch then branch off to lanes to watch out for in regards to that market. The goal in mind is to place carriers, brokers and shippers in the markets that will benefit them most.
Market blowup: New Orleans
To start off this new format, we will be taking a look at the New Orleans market. As hurricane season is off to a slow start, outbound volume levels accelerate.
In the last 90 days, New Orleans has experienced a 21% increase in its Outbound Tender Volume Index. This surge in volume caused rejections to begin rising in the middle of May, climbing from what at the time was only about 12% to its current value of 28.8% rejections overall.
This tightens the market and tips the balance of pricing power into the hands of the carriers within it. It also allows them to have more control over which loads they accept, and more importantly, what rate they accept it for.
While this is a positive for carriers, brokers should expect to pay more and prioritize other lanes.
Wait times for carriers within the New Orleans market have reached 136 minutes. That includes time to be loaded and unloaded, and it is safe to assume that one hour will be spent on either side of that transaction. The national average for wait times is 122 minutes. Carriers should expect these high wait times to factor into their drive time and eat into their clock.
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.
Monday’s National Truckload Index Daily: $2.83 per mile
Lane to watch: New Orleans to Houston – $3.40 per mile – 347 miles
- In only one transit day, carriers can make 58 cents above the national average and place themselves into a market with a good chance of booking a load coming out.
- Outbound tender volumes for Houston are up 6.3% week-over-week (w/w) with rejections at 6.6% overall.
- This tightening in Houston has resulted in an increased number of carriers being more selective and trying to push rates upward in their favor.
