Weekly Freight Market Update: Winter’s Last Stand
Industry Insights, Shippers • Published on March 30, 2019
While the calendar says it’s technically spring, winter weather caused some freight frustration this week – and will continue to do so throughout the weekend.
A heavy snowstorm and high wind advisory is expected to hit the Donner Pass in California through the end of the week. All operating motor vehicles will be required to chain up. Shippers need to be on the lookout for potential road closures as the storm hits mid-week. Carriers have looked northeast to the Salt Lake City and Denver markets as volume has continued to pick up throughout the month.
Outbound volume has increased in the American West
Outbound volume in Denver has increased roughly 28% since the start of March, and outbound volume in Salt Lake City, Utah has increased roughly 10% week over week, indicating to carriers that they should not shy away from the historically dead backhaul markets.
Looking out across the country, volumes have remained steady over the last week. National tender rejection rates fell 4.6% week over week, and have remained below 7%.
Capacity surplus have decreased tender rejection rates
With the end of the quarter upon us, some shippers are making a push to move shipments out to customers, but most markets still have a capacity surplus which has moved volatile tender rejection rates down this week to under 6%.
With the last day of the quarter falling on a Sunday, there is a high likelihood of higher than normal weekend volume. Since capacity remains strong across most of the country, carriers should take advantage of the end of quarter volume by keeping trucks rolling through the weekend.
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