Tender volumes proceed with their fast plummet from levels experienced throughout the course of recent months, falling another 3.4% in the previous week. The Outbound Tender Volume Index – Weekly Change (OTVIW) shows how tender volume levels have changed throughout the course of recent days on a market level. On the map below, red markets show regions where delicate volumes are declining, while blue market sectors demonstrate areas of expanded cargo interest.
Harrisburg, Pennsylvania, is presently the fourth-biggest market concerning outbound delicate volume, giving up its place as the third-biggest market after volume levels fell by 11.4% in the previous week. The Ontario, California market at long last looked alive in the previous week as delicate volumes expanded by 6.3% week-over-week (w/w), the first week after week expansion in quite a while. With dismissal rates in the Ontario market moving sideways, the increase in volumes is a splendid spot in a market that is giving indications of critical facilitating.
Outbound load tender volumes keep on falling cross country and are down 20% year-over-year (y/y) – from 15294.33 basis point (bps) to 12256.29 bps. This decline seems to have no foreseeable resolution as consumers shift from merchandise to administrations matched with inflationary tensions that diminish interest for load orders. While volumes are up 25% contrasted with 2018 levels before the pandemic, there likewise is roughly 10% more trucking capacity that has entered the market since the pandemic began.
Expect spot rates to proceed with their descending pattern as this increased trucking capacity competes for declining trucking demand, pushing down rates and constraining trucking margin. While the Easter occasion might solely affect trucking capacity and demand, expect more pressure on load tender consistency rates and administration levels as transporters and clients exploit this opposition to drive down rates and look for transportation cost reserve funds alleviation. There is a gamble that contracted rates, haggled prior during tighter capacity, may confront disturbance as transporters could push customarily contracted paths on the spot market assuming rates decline further beneath contracted rate levels.
Source: Freight Forecasting Platform – Freight Data – FreightWaves SONAR