Market Update 8/20

Good Evening,

Both the volume index and the tender rejection percentage moved in a positive direction yesterday, with volumes up almost .5% since the close of last week and tender rejections hitting 4% for the first time since July 29th. While both of these increases are minimal it is good to see the tender rejection rate move back up to 4% which hopefully signals a little more opportunity. Have a great day, and please let me know if I can help with anything that you are working on. Thanks!!

The Indianapolis, IN Market

·        Volumes out of Indianapolis have increased almost 11% over the last 2 weeks

·        Over that same period inbound rejections have climbed from 4.85% to 6.34% in that same timeframe

·        With increased outbound activity and less carriers willing to enter the market with inbound loads it appears that capacity conditions in Indianapolis are going to tighten

·        Mid-haul and Tweener loads are carrying elevated tender rejection rates of 9.29% and 11.23% respectively

·        As capacity tightens expect rates to be on the rise, especially for loads travelling 250-800 miles

The New Orleans, LA Market

·        Outbound volumes from the New Orleans market have been falling since the beginning of the month. But, inbound load volumes have also fallen which has allowed outbound volume to outpace inbound activity keeping the market in headhaul status

·        As inbound volumes has decreased, tender rejection rates for outbound freight have climbed from 5.19% to 9.68% over the last week

·        Loads that travel 450-800 miles carry the highest tender rejection percentage at 12.27% which shows that carriers have plenty of options to fill their trucks out of New Orleans

·        With elevated rejection rates, look to see if you can pick up volume on the spot market

The Elizabeth, NJ Market

·        Volumes out of Elizabeth, NJ are up almost 33% year-over-year, due in large part to increased port activity

·        With the increased activity the traditionally backhaul market has shifted to a strong headhaul market for carriers looking to move equipment out of the Northeast

·        With increased activity, shippers in the area are looking for other options, and Canadian National and CSX added to those options by offering a new IMDL service between the CSX-served ports of Philadelphia, New York, and New Jersey and CN’s greater Montreal and southern Ontario markets

·        This added service means increased competition for OTR carriers servicing cross border shipments, but OTR still has the upper hand with quicker door-to-door transit times