The highlights from Thursday’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.
Overview: Spot rates have held steady around a $3.97 all-in rate per mile on the MEM–ATL lane, but return rates have increased to a $3.04 all-in rate per mile.
Highlights:
What does this mean for you?
Brokers: Contact your Memphis shippers to see what lanes they have available this week. Increase your bids, but keep downward pressure on carrier rates since the national average for spot rates is in decline.
Carriers: Carriers with inbound Memphis trucks should search the spot market for loads that run between Memphis and Atlanta. Bid the loads above a $4.20 all-in rate per mile, and let your shipper negotiate your rate down slightly. Search for a return load before your truck arrives in the Atlanta market.
Shippers: Both Memphis and Atlanta shippers need to keep dry van outbound tender lead times extended while market conditions continue to deteriorate. Keep downward pressure on carrier spot rates, and secure capacity as early as possible.
Overview: Spot rates rise as outbound tender rejection levels surge from the greater New Orleans market.
Highlights:
What does this mean for you?
Brokers: The overall New Orleans market is seeing a rapid rise in outbound tender rejections relative to the New Orleans to Chicago lane. That indicates one of two things — the Chicago lane remains a favorable lane for carriers or New Orleans outbound load volumes are surging to different locations. Use rising spot rates to quote ad hoc loads higher and focus on targeting return loads to Chicago and Midwestern carriers that might be drawn to New Orleans due to rising volumes and rejections.
Carriers: The rapid rise in outbound tender rejection volumes from the New Orleans market is perplexing. While hurricane season officially began Wednesday, there appear to be no immediate weather-related causes for this decline in capacity. This appears to indicate that a possible rise in rejections may be related to spring/summer surges from large-volume customers in the market, as the substantial contract tender rejection increases have not materialized in major upward spot market movement. Now that one of three loads are being rejected from the New Orleans market, there is an opportunity to solicit large-volume customers and attempt premium ad hoc rates before they attempt to solicit on the broader spot market.
Shippers: An overall outbound tender rejection level of 33.82% is expected to cause localized service disruptions due to lack of available capacity to cover the increase in truckload demand. Expect to utilize all parts of the routing guide if your primary and secondary carriers cannot commit to the increases in volume or are being pressured by other customers to divert capacity.
Source: freightwaves - SONAR sightings for June 2: Memphis, Tennessee, to Atlanta, carrier update, more
Editor: FreightWaves Staff