While a series of winter storms have impacted freight from coast to coast, with highway closures surrounding some major freight markets, the soft marketplace continues to show a surplus of capacity nationwide. According to FreightWaves, national tender rejections have remained stagnant, while tender volumes have decreased 3.5%.
Monday, January 17 saw the largest single day volume decrease on record (holidays excluded) with the National Tender Rejection Index dropping almost 3%.
Mid-January is typically a lull for freight, but this year is far less volatile than January 2018. According to DAT, volume nationwide is comparable to 2018 but added capacity has allowed Dry Van spot rates to fall this month.
Both the southeast and south central regions have an excess of capacity and are shippers’ markets.
Texas a record this week reaching an all time floor in tender rejection percentage at 4.82% for the state. Rates are following suit and remaining low for all outbound Texas freight.
Georgia also set a state record low for tender rejections. Florida followed suit, recording tender rejections 67% lower than the same time last year. In fact, some carriers are seeing shippers putting contracted freight to the spot market to undercut primary rates.
See a detailed breakdown of trends in your region with the Convoy Shipper Platform. The Market Outlook curates a vier of freight impacts and trends by region to give you a full picture of the market. It’s free to access, simply sign in or register now.
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