SONAR observations for October 22: Memphis to Chicago, tight reefer market and more

The highlight reel of Friday’s SONAR reports. For more information on SONAR, the industry’s fastest freight forecasting platform, or to request a demo, Click here.

Tracks to watch

By Zach Strickland, Director, Freight Market Intelligence


Overview: Brokers are expected to raise rates in light of the tightening Memphis market.

Strong points

  • Over the past week, the bid rejection rate on the Memphis-Chicago route rose 249 basis points (bps) to 26.7%.
  • The spot rate for dry vans in the track is $ 3.09 / mile, including fuel surcharges; that’s up $ 0.10 / mile from the previous week.
  • Although both cities are intermodal hubs, only 31 domestic containers / day have moved in the track over the past week, so there is not enough density to make rail intermodality viable for most. shippers.

What does this mean to you?

Brokers: Raise your rates in the way to reflect the tightening Memphis market. When negotiating with carriers, cite the efficiency of a transport that can be done in a day as well as the attractive Chicago Van Headhaul Index of 75.

Carriers: Given its status as a leading haulage market, Chicago is a strong destination despite the rejection rate of outgoing Chicago vans bids 230 basis points lower than the national bid rejection rate. The Chicago Headhaul Index is 75, up from 60 in the past few days, suggesting this is a market where carriers will find it easy to top up.

Senders: Extend delivery times for outbound Memphis loads to help secure capacity given the currently tight Memphis market. The average time for outbound Memphis loads is currently 2.8 days, indicating that most other shippers are concerned about securing capacity.

TOLEDO (Ohio) to CHARLOTTE (North Carolina)

Overview: Discards are increasing as the Headhaul Index exceeds 22% w / w.

Strong points

  • Toledo’s outbound tender volumes are up 2% w / w, signaling increased capacity demand.
  • The Headhaul Index in Toledo is up 22% w / w, signaling that capacity is likely to tighten.
  • Toledo’s outgoing bid rejections are up 249 basis points w / w, signaling capacity is likely already tightening.

What does this mean to you?

Brokers: Rejections of outbound tenders from Toledo to Charlotte are 289 basis points higher than the national average and 355 basis points higher than in the large market in Toledo. For this reason, it will likely be more difficult for you to find capacity for outbound freight bound for Charlotte. As the Headhaul Index continues to rise, putting pressure on capacity and spot rates, you will need to prioritize the Toledo market for coverage while ensuring your team accurately assesses Toledo outgoing loads. for the next few weeks.

Carriers: Releases are up 249 basis points in the Toledo market, which has likely started to put significant upward pressure on rates. If outbound volumes continue to increase relative to inbound volumes (only a small increase in weight), stay firm on your tariffs in the coming days to ensure they reflect the tightening capacity that is likely to continue as you go. as demand increases.

Senders: Your cohorts of shippers in Toledo have reduced bidding times to 2.7 days over the past few weeks, which means they have been slow to respond to the increase in call rejections. offers w / w. Judging by the 22% w / w load index increase, it would be wise to outperform your competition for truck loading capacity by pushing your bidding times closer to 4 days. This will help you maintain adequate capacity if / when the market tightens again.

ELIZABETH (New Jersey) to RALEIGH (North Carolina)

Overview: Elizabeth is showing signs of dramatic easing.

Strong points

  • Elizabeth’s outgoing rejection rate fell from 22.6% to 18.5% over the past week.
  • Rejection rates by track to Raleigh have moved along with the overall market, but about one and a half percent higher.
  • Raleigh’s outgoing rejection rate increased slightly this week, but is coming out of a huge drop that occurred the week before. Outgoing and incoming demand fell almost jointly, but it remains in a situation of oversupply.

What does this mean to you?

Brokers: Expect an easing of conditions down this path; capacity has been more available outside Elizabeth over the past week. Market and track rejection rates have fallen below the national average with capacity as low as it has been since early August.

Carriers: Expect fewer opportunities on this route this week with moderate conditions in Raleigh. Spot market activity is expected to be lower than the previous two months outside of Raleigh, so make sure the pre-plans are strong, with less reliance on spot load availability.

Senders: Expect more carrier availability on this route this week compared to the previous two months. Last minute loads will still be subject to spot market premiums, but loads with delivery times of two to three days should benefit from better compliance.

Carrier update presented by PowerFleet

Donnie Gilbert, Director of Customer Solutions at FreightWaves and Senior Retail Analyst Andrew cox Take a look at freight volumes and rejection rates nationwide in the carrier update presented by PowerFleet.

The fridge market is tight

By Mike Baudendistel

For all shippers who use refrigerated transport, there has been a lot of good information this week in the reefer market.

Clearly, the reefer market remains very tight with an average spot rate of $ 4.11 per mile including fuel surcharges, and carriers rejecting 38% of tendered loads with temperature requirements.

Around this time last year, the average refrigerated rate was $ 3.29 per mile.

FreightWaves market expert Mike Baudendistel writes The Stockout newsletter. To receive this newsletter, please click here.

Weekly sea shipments by port

By Zach Strickland

SONAR users can view the weekly total of import shipments that have arrived in the United States (as reported by United States Customs and Border Protection [CBP]) monitoring weekly import sea shipments by SONAR port (WICSTM). This number represents the total number of import shipments recorded through a specific US port (per week) and includes both containerized and non-containerized cargo.

When a shipment is authorized to enter the United States, it is documented using the Bill of Lading, which serves as documentation for the financial transaction between the buyer (official US importer) and the shipper (seller) in a country. foreigner. This information is communicated by CBP four to five days (on average) after the date the shipment has actually cleared customs.

The volume of imports cleared into the United States can be a leading indicator of intermodal and truckload demand, since imports require subsequent surface transportation to warehouses or distribution centers. In addition, imports are closely linked to international rail intermodal volumes.

In addition, a large portion of the cargo carried by domestic intermodal suppliers includes imported cargo that has been transhipped from international containers to larger domestic containers.

Sender update

Chief Economist Anthony smith and Senior Retail Analyst Andrew cox watch the biggest trends during the week in the shippers update.

Is bitcoin growing faster than the demand for full loads?

At this episode of #WithSONAR, Luke Falasca and Kyle Taylor take a look at the continued high demand for truck load capacity and the impact peak season will have on it in the fourth quarter.

They are also discussing how bitcoin and other cryptocurrencies are here to stay for a while and gain more and more value every day. Also, the two look at some specifics of the Dallas market and explain why this market is not following the overall national trend.

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