The truckload market appears to be increasingly stable through a period when it normally isn’t. While the immediate future appears uneventful, the holiday shipping season is anything but certain.
Flatbed and refrigerated truckload data suggests their markets may have floored for these two trailer types.
The freight recession may ease earlier than expected, according to recent comments from Morgan Stanley analyst Ravi Shanker. In a call to clients on Monday, Shanker said, “Shippers continue to remain on reorder ‘strike’ while they wait for stronger signals or more favorable conditions on macro but while destocking at the same time, which could lead to everyone wanting to restock at the same time, when the coast clears (or they run out of inventory).”
Removing future threats to demand, the refrigerated truckload sector supports the thesis that the truckload market has hit a floor.
Flatbed capacity tends to be as erratic as its demand, making it harder to secure in general.
What do historically low rejection rates mean for the truckload industry?
“Our growth and potential were being hindered by manual processes and limited visibility into workflows,” US Cargo Brokers founder Adam Konopko said. “After adopting Ditat’s TMS, US Cargo experienced a complete transformation.”
FreightWaves’ “State of Freight” webinar for February had little good news for carriers hoping for higher rates sometime soon.
Outbound tender rejection rates, a measure of the percentage of truckload shipments tendered to carriers by shippers, have reached a record at 5.05%. For trucking, this will be a cause of mostly stress instead of celebration.
Carriers and brokers tend to have the weather on a TV somewhere in their facilities throughout hurricane season because of the dramatic impacts storms can have on their operations and bottom lines. Ian hit at a time when trucking will not be as reactive to this devastating storm.
Less than 6% of all truckload shipments in the U.S. are currently being rejected.
Carriers gobble up contracted freight, leaving the spot market barren for the holiday week. While not overtly obvious, there is still some semblance of hope for a decent peak season for carriers.
U.S. Xpress is going through a reorganization following a recent round of layoffs. The technology-driven Variant program will be merged into a larger Highway Services group, which will include the legacy over-the-road business and the USX freight brokerage.
The contracted freight market is in great condition at the moment, but the short-term indicators raise questions about its sustainability.
Relatively abundant for most of the pandemic, flatbed capacity has become scarcer than ever thanks to the surging price of crude and a white-hot construction sector.
Reefer demand remains strong heading into late January, breaking seasonal patterns that many have come to expect.
Prices have increased 17% but carrier compliance shows only marginal improvement
Contract rates for trucking have been rising since late last year and finally appear to be effecting compliance, but at what cost?
Carriers are rejecting a disproportionate amount of long-haul freight heading east versus west. Does this dramatic imbalance have long-term implications?
This dip is likely to be temporary.
The market takes a breather this week with tenders down 7% week-over-week.
Tender rejections slip but still elevated.
Tender rejections return to all-time high.
Tender rejections and spot rates also fall slightly.
Spot rates steady well above $3.00 per mile.
This week notched a new all-time high in spot rates.
Leverage is firmly in carrier’s favor.
The expected rebound for truckload markets did not disappoint.
Tender rejections see a massive spike.
Spot rates have increased for the first time in five weeks.
Tender rejections rise for the first time in a month.
Trucking markets headed back in the right direction
Normal January seasonality may be upon us.
Tender volumes accelerate, driven by strong, stimulus-fueled consumer spending.
Q1 should be one of the stronger first quarters in recent history from a consumer and freight volume standpoint.
Imports continue to pile up as shippers and carriers take time for the holidays. They may come back to a mess.
Consumer resilience wavering.
Spot rates continued to increase after the holiday period ended even as capacity returned to the market according to the Outbound Tender Reject Index.
Rejections ease again slightly.
Tender rejections fall as drivers return to the roads.
Capacity is historically tight in trucking, pushing spot rates and profit margins higher. How much of this momentum will carriers be able to maintain?
Expect rebound next week.
Temperature-controlled equipment rates are already breaking records, could the vaccine distribution push them higher?
Tender rejections reaccelerate.
Tender volumes climb to another all-time high on Monday.
Tender volumes climb to another all-time high.
Volatility compresses as peak season begins
Tenders and rejections remain elevated as peak season begins.
Carriers are investing in new trailers over tractors during the most recent freight boom. What does this mean for capacity in the future?
Markets consolidate as peak season nears.
Capacity remains very tight.
Calls for the top of the trucking market may be premature.
Have tender rejections peaked?
Bullish backdrop for trucking remains.
The trucking market continues to firm.
The strength in the trucking market marches on.
The trucking market remains strong.
The last time capacity tightened to this level, capacity flooded the trucking space. Will the same outcome occur in 2020?
Carrier momentum continues.
Wait times have fallen as as shippers compete for capacity. What is the connection between capacity and detention?
Carriers in best position in years.
Carriers appear to be gaining momentum.
Backdrop for carriers remains bright.
Capacity still tight.
The erratic nature of the economic recovery has dramatically changed shipping behavior, which has strained carrier networks.
Volumes decline post Fourth but capacity stays tight.
Capacity is almost as tight as it was during the panic buying inspired March. Could it get tighter?
Soaring volumes and tender rejections continue.
This week’s DHL Supply Chain Pricing Power Index: 55 (Carriers) Last week’s DHL Supply Chain Pricing Power Index: 50 (Balanced) Three-month DHL Supply Chain Pricing Power Index Outlook: 60 (Carriers) The DHL Supply Chain Pricing Power Index uses the analytics and data contained in FreightWaves SONAR to analyze the market and estimate the negotiating power […]
Highest volumes since March.
Tender rejections strongest since March.
A lot of the recent struggles for carriers originated in what many consider to be the most profitable year.
Tender rejections cross the 6% mark.
Produce season has arrived, pushing rates higher than 2019 in many areas. Will this impact the rest of the country’s capacity?
Volumes keep chugging along
The trucking market continues to heat up.
The trucking market continues to heat up.
Load volumes and rejections improve this week
Outbound tender volumes inch upward
Green shoots for volumes but not tender rejections
Volumes up slightly week-over-week
Volumes still searching for a bottom.
The maritime shipping companies have been able to increase their rates amidst the COVID-19 induced shut down. Is this a sign of things to come for domestic carriers?
After peaking at up 30% year-over-year, volumes are now down.
Record volumes cool considerably
Record high volumes cool
After huge gains, FreightWaves OTVI has its first down day since the end of January.
Trucking capacity is the tightest it has been in 17 months thanks to the surging volumes, but all signs point to this being a short-lived event.
Each week, FreightWaves will release a short video highlighting the top moving markets around the country using our proprietary datasets. Included in this weekly update will be a combination of freight volumes, capacity and more to give viewers a deep understanding of which markets to notice. The Outbound Tender Volume Index (OTVI) is SONAR’s proprietary […]
New all-time high for volumes
Volumes show signs of life.
How coronavirus will impact volumes remains to be seen
Volumes still sluggish but positive.
Volumes not yet showing signs of life.
February off to a slow start.
Flat volumes, excess capacity persist.
Reefer volumes have broken out this winter as dry van demand fades. Does this mean the sector is in for a strong recovery in 2020?
Reefer market strong
Freight volumes and tender rejections range-bound for now
