trucking capacity

Why are shippers increasing lead times?

Chart of the Week: Outbound Tender Lead Time – USA SONAR: OTLT.USA

Tender lead times last week hit their highest value since SONAR released tender data in 2018, averaging 3.76 days between tender and requested pickup. The previous high of 3.68 was set last year at the same time. Is this a longer-running trend or just a seasonal glitch?

Christmas is typically the seasonal peak of the Outbound Tender Lead Time (OTLT) index. Lead times increase leading into major national holidays as transportation...

https://www.freightwaves.com/news/why-are-shippers-increasing-lead-times

Bracing for tighter truck capacity, shippers rebid contracts

In anticipation of a tighter truck freight market in 2025, some shippers have started making contract adjustments as pricing power begins to shift to carriers.

“We’re actually seeing price appreciation in contract rates as the spread between spot and contract is increasing,” said Ryan Grote, supply chain solution analyst at FreightWaves.

“Roughly 70% of freight moves under contract, and the fact that we’re already seeing those prices start to appreciate I think is another signal that the bottom...

https://www.freightwaves.com/news/bracing-for-tighter-truck-capacity-shippers-rebid-contracts

Milton makes landfall on freight market

Chart of the Week: National Outbound Tender Rejection Index – USA SONAR: OTRI.USA

National outbound tender rejection rates (OTRI), the rate at which carriers turn down requests from their customer for truckload capacity, jumped from 5.13% to 5.62% from Oct. 8 to Oct. 9 as Hurricane Milton closed in on Florida’s west coast. This was the largest single-day jump of the past two years. What are the takeaways for transportation providers and managers in the wake of the third major transportation...

https://www.freightwaves.com/news/milton-makes-landfall-on-freight-market

Freight market green shoots fade heading into October

Chart of the Week: National Truckload Index (Linehaul Only), Van Outbound Tender Rejection Index – USA SONAR: NTIL.USA, VOTRI.USA

Spot rates excluding the total estimated cost of fuel (NTIL) have fallen 3% since the start of August. Dry van tender rejection rates (VOTRI), which measure the percentage of loads that carriers are unable to cover for their customers, are averaging about 30 basis points lower. In other words, the market that appeared to be showing signs of tightening in the summer...

https://www.freightwaves.com/news/freight-market-green-shoots-fade-heading-into-october

Lackluster Labor Day gives no lift to trucking market

Chart of the Week: National Truckload Index (Linehaul Only, Outbound Tender Reject index – USA SONAR: NTIL.USA, OTRI.USA

The Labor Day holiday was not a strong catalyst of disruption to the U.S. trucking market. Both spot and rejection rates reacted minimally to what was the most volatile holiday period during the pandemic years.

National dry van spot rates declined heading into the holiday while tender rejection rates got a short-lived boost from 4.3% to 4.9% before falling back below 4.3% this...

https://www.freightwaves.com/news/lackluster-labor-day-gives-no-lift-to-trucking-market

Fuel costs show why transportation market is so challenging for providers

Chart of the Week: Diesel Truck Stop Actual Price Per Gallon, National Truckload Index – USA  SONAR: DTS.USA, NTI.USA

Retail diesel fuel costs (DTS) are up 33% versus April 2019, while the National Truckload Index (NTI) that measures all-in spot rates are only up 16% over the same time. The implication is that carriers are in a far worse position on the spot market than they were in 2019 as they are unable to fully pass along operating costs.

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https://www.freightwaves.com/news/fuel-costs-show-why-transportation-market-is-so-challenging-for-providers

Tractor demand no longer necessarily a gauge for market health

Chart of the Week: ACT Research Equipment Orders – Class 8  SONAR: ORDERS.CL8

Class 8 truck orders remained unseasonably strong through the first few months of 2024, outperforming last February by over 20%, according to ACT Research. Freight-hauling semi trucks typically dominate this category and have been a good indicator of industry health, but like many indicators, this value’s implications have changed.

Ask transportation service providers the state of the national freight market, and they...

https://www.freightwaves.com/news/tractor-demand-no-longer-necessarily-a-gauge-for-market-health

Trucking authority correction accelerates

Chart of the Week: Carrier Details Net Changes in Trucking Authorities – USA  SONAR: CDNCA.USA

Since the start of November, net active truckload operating authorities have dropped by 9,000 — an approximately 12% increase over the same period last year, according to Carrier Details’ analysis of Federal Motor Carrier Safety Administration data. 

The operating authorities measured here are Motor Carrier of Property authorizations. These are specific to for-hire truckload companies, which can...

https://www.freightwaves.com/news/trucking-authority-correction-accelerates

Key US lane shows soft freight market still vulnerable to shipping imbalance

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Chart of the Week: Spot and contract rate (including fuel) – Chicago to Atlanta  SONAR: Market...

https://www.freightwaves.com/news/key-us-lane-shows-soft-freight-market-still-vulnerable-to-shipping-imbalance

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