Volumes turn downward heading into the Christmas week while rejection rates have rebound back above 20%. Carriers still maintain a firm grip on pricing power in the market.
The Freightos Baltic Index (FBX) is the world’s leading—and most accurate—index of market rates for 40′ containers.
Volume levels are following a similar trend to 2019, just 40% higher. Tender rejection rates are trending sideways, likely to move higher over the next week.
Tender volumes decline but remain elevated compared to ‘normal years’ meanwhile rejection rates have found footing around 20%.
Tender volumes decline but remain elevated compared to ‘normal years’ meanwhile rejection rates have found footing around 20%.
Tender volumes have started to erase the Thanksgiving noise. At the same time, rejection rates have plateaued around the 20% mark.
The Freightos Baltic Index (FBX) is the world’s leading—and most accurate—index of market rates for 40′ containers.
Thanksgiving noise continues to mask freight volumes, but that noise will be erased in the upcoming days. Meanwhile, Thanksgiving drove spot rates higher over the past week.
Thanksgiving always leads to a sharp decline in tender volumes. Leading into Thanksgiving freight markets experienced an uptick in accepted volumes.
Spot rates didn’t experience the uptick that rejection rates did last week. Thanksgiving is impacting both freight volumes and capacity.
Rejection rates have accelerated over the past week as drivers start to come off the road for the holiday.
Volume growth dissipates to kick off November while rejection rates remain well below year-ago levels.
The Freightos Baltic Index (FBX) is the world’s leading—and most accurate—index of market rates for 40′ containers.
Volume growth dissipates to kick off November while rejection rates remain well below year-ago levels.
Volume growth dissipates to kick off November while rejection rates remain well below year-ago levels. Tightness in Southern California will put upward pressure on rates.
Volume growth dissipates to kick off November while rejection rates remain well below year-ago levels. Tightness in Southern California will put upward pressure on rates.
Tender volumes rebound as tender rejection rates jump back over 20%. Meanwhile, spot rates break the three-week downward decline.
Contract rates for trucking have been rising since late last year and finally appear to be effecting compliance, but at what cost?
Load volumes are stable with volume growth inbound. Spot rates follow rejection rates on a downward slide.
Load volumes are stable with volume growth inbound. Spot rates follow rejection rates on a downward slide.
Freight volumes in the largest markets are starting to accelarting, signaling the start of the peak truckload season.
Freight volumes in Southern California are starting to ramp, signaling the start of the peak truckload season.
Elevated accepted tender volumes and rates signal that carriers are maintaining pricing power. Truckload capacity constraints are easing as contract rates climb.
Strong freight volumes signal that carriers are firmly in the driver seat with regards to pricing power.
Strong freight volumes signal that carriers are firmly in the driver seat with regards to pricing power.
Spot rate snap back signals that carriers are firmly in the driver seat with regards to pricing power.
In this sensitive market, small changes to the balance have deep, long lasting impacts.
In this sensitive market, small changes to the balance have deep, long lasting impacts.
Will Hurricane Ida impact freight contracts? Will carriers move from shippers’ contracted freight to the spot market?
The rise in volumes continues to outpace the rise in rejection rates, and spot rates keep climbing.
There is a true broker-to-carrier contract rate that reflects the model of our industry. That rate distorts the true spot rate and should account for maybe two-thirds of the rates brokers provide to benchmarking tools.
Rapidly changing shipping patterns and cost structures have made historical comparisons much more challenging for the freight market.
Beginning in the second quarter, there was a notable shift in the types of loads shippers were tendering. Why would this assist with increasing compliance?
We’re two weeks into the third quarter, a time when seasonal freight movement moderates ahead of the back-to-school season and the eventual peak holiday season. Thus far, the moderation simply hasn’t materialized.
Shippers may have had a little more success with contracted carriers in May, but it came at a high cost.
Here’s a closer look at the difference between spot and contracted freight rates.
Transportation rates continue to climb while service is at an all-time low. Shippers will have to be aggressive in devising new strategies to keep costs under control.
The Outbound Tender Reject Index has declined substantially since the beginning of the year. This shouldn’t be seen as a sign of a material capacity loosening, rather an effect of the ongoing rebid season pushing contract rates higher.
Reefer spot volume volatility has exploded across the nation over the past week.
In today’s edition of The Daily Dash, spot rates could be heading higher yet again. Plus, truckload carriers wonder if we are in peak season or a new normal; and a Texas group tackles tort reform.
Both truckload tenders and tender rejections rose this week. If spot rates are to continue the succinct but lagging dance with tender rejections, we should see spot rates inflate over the next two weeks. Also, with Thanksgiving just a week away, drivers will be seeking freight that drives them toward home, which typically pushes rejections and spot rates higher.
This week’s DHL Supply Chain Pricing Power Index: 75 (Carriers) Last week’s DHL Supply Chain Pricing Power Index: 80 (Carriers) Three-month DHL Supply Chain Pricing Power Index Outlook: 75 (Carriers) […]
Trucking spot rates are averaging well over what they were a year ago implying many shippers will see rates increase next year. How much will it be?
Transparency is at the foundation of all excellent relationships. When there are grievances within the supply chain, an open line of communication and a commitment to more transparent, intentional dealings is the key to our collective success.
We have gotten word that carriers are holding capacity until the end of the day before auctioning it to the highest bidder. Rates are nearing $3 per mile on a national level, and rates are already above that in 51 of 100 Truckstop.com lane pairings.
Carriers are rejecting as much freight now than at any point in the past three years. Spot rates poised to break $3/mile on a national level.
Driver wages are holding steady during the coronavirus pandemic, but care for safety is where priority should remain, says CEO of National Transportation Institute.
There is no change in the Pricing Power Index this week despite a continuation of the trends we’ve seen over the past few weeks: astounding volumes, carriers rejecting contracted freight at a high clip and rates continuing to trudge upward.
A decline in contract rates that were implemented prior to the COVID-19 outbreak may make this year tighter for carriers.
The carriers gained pricing power this week on the back of surging volumes. Capacity remains loose although tightening each of the past five weeks.
Many expected a worse outcome for carriers in March as a result of the COVID-19 outbreak. Ironically, the pandemic may have padded some 1Q results.
Tender rejections are often a leading indicator of spot rates and thus contract rates at a lag.
The company describes Winmore 360° as the world’s first LSP-focused integrated software for every stage of the transportation RFP process and tendered lifecycle.
In the over-the-road truckload for-hire market, there are two major types of trucking rates: contract and spot
The DHL Supply Chain Pricing Power Index moves towards the carriers for the first time since early September.
Gross revenue and margins are in the most difficult stage of the cycle right now.
Third-quarter earnings reports and economic data swing in carriers’ direction, but not enough to move the needle in this week’s DHL Supply Chain Pricing Power Index.
XPO Logistics stays ahead of macro weakness as net income, EPS jump in q3
Last Week’s Pricing Power Index: 35 (Shippers) The trucking industry operates in a market based on real-time demand and supply. When demand is higher than capacity, carriers gain negotiating power […]
The weekly FreightWaves Pricing Power Index jumps 10 points in favor of carriers.
Brokers’ gross margins will compress unless they get shippers on board.
The FreightWaves Pricing Power Index is a new weekly feature that highlights the balance of power between shippers and carriers.
FreightWaves Freight Intel Group predicts an increase in trucking company failures in 2019. Read why they make that prediction in this article.
FreightWaves has also observed downward pressure on contract rates and the beginning of a capacity bleed-off.
Rate increases are slowing and could even turn negative later this year, although fleet profits should remain strong for much of the year.
The boundary between spot and contract pricing is always shifting, especially when freight markets are volatile.
Robinson sees low to mid single-digit contract gains, soft spot pricing, Biesterfeld says.
Access to data has improved market transparency, and recent spikes in volatility make the case that transportation costs must be hedged and de-risked.
Spot-heavy 3PLs are looking for freight while brokers with good contract relationships are getting rewarded.
Shippers aren’t shy about moving contract rates down in RFP negotiations, and even brokers are surprised at how cheap capacity has become.
Asset-based carriers think contract rates are going up; brokers think they’re going down.
On today’s episode, Chad Prevost talks with Nick Austin and John Paul Hampstead about weather conditions and the current pressure on contract rates.
Cowen expects softening trucking prices in 2019 to be a headwind for truckload carrier earnings, but should widen gross margins for freight brokerages.
The November Market Update, presented in partnership with Convoy, featured FreightWaves CEO Craig Fuller and Chief Economist Ibrahiim Bayaan, who discussed macroeconomic data and trends in freight markets.
Wiehoff says demand should stay firm while supply comes on-stream. Firm posts strong Q3 results.
In Partnership with Arrive Logistics… we talk freight market data with executives from Arrive Logistics and ask them how they’re preparing to handle surging volumes in Q4 and beyond.
All three modes of truckload freight are reflecting an environment in which demand exceeds capacity by a wide margin, which sets up for continued strong contract pricing.
We consistently hear from shippers that the contractual freight process is failing them. It’s a slow and static process that is misaligned with the fast-paced and volatile freight market. Today, […]
The spot market is normalizing; XPO’s Brad Jacobs talks jazz and M&A; China COSCO’s purchase of OOCL might be held up; railroad Teamsters want NAFTA changes; weak spot rates for container ships pulling down contract negotiations; Xi looks for a way out of the trade war.
For fleets that spend time operating on load boards, the high spot rates are a blessing. For shippers, though, it’s been a challenging time as they have been forced to adjust to a new era in trucking.
For the first time since DAT began reporting its data in the current format, the monthly spot rate has exceeded the contract rate at the same time in all three modes. And the latest DAT Trucking Freight Barometers are continuing to signal that the ‘fall surge’ is happening for the first time since 2007. Now is a good time to have secured capacity and a bad time to be locked into contract rates.
