SONAR Sightings for June 10: National Truckload Index Daily and carrier update

The highlights from Friday’s SONAR reports are below. For more information on SONAR — the fastest freight-forecasting platform in the industry — or to request a demo, click here. Also, be sure to check out the latest SONAR update, TRAC — the freshest spot rate data in the industry.

Truckload sector highlights:

  • Ontario, the second-largest market in the country, is showing signs of tightening as rejection rates increased 80 basis points (bps) week-over-week (w/w),
  • Conversely, conditions in Allentown and Harrisburg, Pennsylvania, as well as Memphis, Tennessee, are easing as rejection rates fall by 104 bps, 120 bps and 329 bps w/w, respectively.
  • Jacksonville, Florida continues to be a volatile market as rejection rates jump again this week, rising by 418 bps w/w.

NTI as a reference point

National Truckload Index is a daily look at how spot rates in specific lanes hold up in comparison to the national average to give carriers and brokers an idea of which lanes to gravitate toward or avoid.

Friday’s National Truckload Index Daily (NTID): $2.92

Los Angeles to Phoenix: $3.97 — 373 miles

  • Spot rates began to head downward at the start of February from $5.08 a mile to the current dollar figure. This is historically a major headhaul lane, and in one transit day, carriers can make $1.05 more per mile than the national average. The length of haul causes these shorter lanes to have inflated rates compared to the longer hauls.
  • LA has much more volume going out than coming in, making it a headhaul market. Rejection rates are among the lowest in the country at 3.4%, reflecting the decrease in volume. LA’s Outbound Tender Volume Index has decreased 10% in the past three months.
  • The chances of getting a load out of Phoenix after making the run aren’t usually very high; OTVI is down 2% in the past three months and the Headhaul Index is down 21% in the same time period. If carriers are able to have consistent loads in this lane, the deadheading back may not be as much of an issue if loaded miles pay more than the costs to ship.

Chicago to Atlanta: $2.92 — 723 miles

  • After decreasing $1.28 since the beginning of March, spot rates for this lane are beginning to plateau right on par with the current national average, providing at least minimal peace of mind for smaller owner-operators.
  • The Outbound Tender Volume Index for Chicago has climbed 15% in June alone.
  • On the back end of the lane, Atlanta’s Headhaul Index has risen 190% in the past three months, with rejections at 7.9%. Rejection rates provide the best insight on volumes and therefore on the ability to book a load on the way out.

Columbus, Ohio, to Jacksonville, Florida: $2.89 — 806 miles

  • This lane historically has remained at or around 50 cents higher than the national average, but in the past three months spot rates from Columbus to Jacksonville have dropped more than $1 a mile to $2.89, 3 cents below the national average.
  • Given its geographical location, outbound tender volumes for Columbus have remained relatively consistent over the course of the year, currently at 283.82 basis points (bps).
  • Tender rejections out of Jacksonville have reached 17%, indicating the enormous volume coming out. Leaning more toward a carrier’s market, Outbound Tender Volume Index for the Jacksonville market has surged 44% in the past three months, giving carriers a great chance to book a load out of the Florida market — which can be rare.

Source: freightwaves - SONAR Sightings for June 10: National Truckload Index Daily and carrier update
Editor: Corey Smith