Freight dynamics remain steady despite the challenging holiday season, as reflected in the FreightWaves Supply Chain Pricing Power Index staying at 40 for shippers for another consecutive week. The unchanged index value suggests that shippers continue to hold balanced pricing power with carriers. According to data cited from the FreightWaves report, the coming weeks are expected to provide clearer direction, especially after the New Year reset.

Read also: Carriers Regain Ground in Freight Negotiations Amid Seasonal Slowdown

Market Signals Indicate Seasonal Patterns

FreightWaves SONAR insights reveal that the Outbound Tender Volume Index (OTVI) exhibits a significant decrease of over 31% compared to last week. This comes as the freight industry grapples with the logistical disruptions caused by holidays falling mid-week. Contract Load Accepted Volume, which tracks accepted load volumes, aligns with this trend, also reporting a similar decline. Notably, of the diverse freight markets, only four reported volume growth, largely in rural segments.

Shifts in Equipment Type Indices

Dry van shipments have experienced a more pronounced downturn than the broader market, with Van Outbound Tender Volume Index falling by 34% in a week. Conversely, reefer shipments maintain resilience, with their respective index only dropping by 21.2%, marking a yearly improvement of 3.4%.

Tender Rejection Rates and Spot Rates

Unanticipated spurts in tender rejection rates saw them cross the 10% threshold briefly – a first in over two years. The Outbound Tender Reject Index (OTRI) highlights this shift, with a weekly climb of 35 basis points to 9.69%. This landscape is echoed in variations by equipment type. Dry van and reefer market tender rejection rates soared, whereas flatbeds noted an impressive 360 basis points rise.

The National Truckload Index’s ascent to $2.46 per mile is notable, while linehaul rates also report marginal increases, standing as a significant 18 cents per mile above rates from the previous year. As the market regains footing in post-holiday adjustments, IndexBox data anticipates potential rate evolutions as carriers react to these fluctuating conditions.

Source: IndexBox Market Intelligence Platform