Market-Update 8/15

As we move deeper into the week we are seeing volumes start to trend down slightly from where they started off the week and tender rejections have acted accordingly staying at record low rates of under 3.8%. Continue to look to add volume to make up for compressed margins, and rely on the lack of options for carriers to drive costs down. Bring value to your customer beyond having a truck and be sure you are talking with your carriers to find out how we can help keep ALL of their trucks filled. Have a great day!

The Pittsburgh, PA Market

·        Pittsburgh is enjoying an extremely successful 2019, with freight volumes tending 115% higher than 2018.

·        Typically loads out of Pittsburgh travel within a 500 mile radius, but there has been an increasing need for capacity to cover both tweener and long-haul loads

·        Rejection rates for both tweener and long-haul loads are trending over 6% the past week so capacity is showing signs of tightening a bit

Push rates down for loads headed into the area, and be prepared to pay a little over market on loads out of Pittsburgh with longer miles

The Houston, TX Market

·        There has been an increased amount of freight headed into Houston which coupled with outbound volumes has caused an excess of capacity

·        Tender rejection rates for dry van loads sit at 3.22%, while tender rejections for reefer loads are down 37% year-over-year and sit at 11.38% which shows that there is some need for reefer capacity

·        Drive rates down to carriers on loads out of Houston, but be prepared to pay a little more on loads headed in

·        Look to the spot market for the opportunity to pick up a reefer load or 2

The San Diego, CA Market

·        San Diego represents an important market for freight crossing the border to and from Mexico

·        Over the last week carriers are reporting wait times of up to 5 hours as officials take longer to inspect their trucks and review paperwork

·        Right now there has been little disruption, but as wait times stay elevated there is a chance for carriers to start to avoid the area

·        Remember to talk to your customers about how elevated waiting times and other factors affect how the carrier market views their freight, and in turn affects pricing