Market Update
Wednesday opens with the national tender rejection rate dropping to 3.78% which marks the lowest point since the start of this metric being measured. With volumes remaining fairly consistent, and little disruption in the market competition continues to stiffen and in turn rates continue to fall. Today we are going to look at the markets of Fresno, Savannah and Miami where volumes have been on the rise which signals opportunity. Please let me know how I can help, and if you have any questions please feel free to reach out. Have a great day!!
The Fresno, CA Market
· Volumes out of Fresno have been trending 22% higher in August versus July, and are currently 46% higher year-over-year.
· Reefer rejection rates have fallen from their peak of 11.18% in mid-July, as they hover around 5.8% today which is up from 4.06% which is where they opened for the month
· Rejections on long-haul loads have also started to move north over the last few days
· With both the reefer tender rejection and long-haul tender rejection rates on the rise, coupled with increased volumes Fresno is becoming a destination for carriers
· Look for opportunities for reefer loads and long-haul lanes to pop up on the spot market
The Savannah, GA Market
· Volumes out of Savannah have been on the rise, while inbound volume activity has started to slow over the last 10 days, which has created a capacity imbalance and has started to cause equipment for Jacksonville to head north to find freight
· If you have freight out of Savannah target carriers located in Jacksonville as there is not much opportunity and they will be willing to deadhead north to a stronger market
· Tender rejection rates continue to remain low at 3.49%, but capacity could tighten quickly if volumes continue to rise without added inbound volume
The Miami, FL Market
· Peak produce season in Florida has come to an end, but that does not mean there is not any activity, especially in South Florida
· Volumes out of Miami have increased almost 8% over the last 2 weeks with produce continuing to ship, and products from the Carribean and South America coming in through the Port of Miami
· There is plenty of capacity in the market so you will have to be competitive on rates to the customer
· Tender rejection rates on loads into South Florida have started to climb in the last 7 days, so be sure you are talking with your regular carriers to combat against rate increases