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: Savannah’s capacity is becoming increasingly unstable.
Highlights:
What does this mean for you?
Brokers: Pad margins in this lane when you are uncertain. Expect an unstable outbound capacity environment in Savannah. You should double-check all loads with more than three-day lead times.
Carriers: Expect slightly better reload potential on the spot market in this lane this week, but very inconsistent conditions may persist throughout the month in Savannah. Atlanta is a relatively consistent market at this point with no significant changes.
Shippers: Stay on top of this lane, keeping lead times around three days when possible. Expect to pay between $950 and $1,100 per load for this lane on the spot market.
Overview: Despite a recent increase in intermodal volume, excess domestic intermodal capacity remains, and also remains an option for spot shippers.
Highlights:
What does this mean for you?
Brokers: Lower your bids in this lane in an effort to maintain margins. In the past month, both dry van tender rejection rates and spot rates in the lane have fallen steadily. The dry van spot rate has fallen 8.5% in the past month to $2.88/mile.
Carriers: Carriers will likely want to accept tendered loads in the lane given that Chicago is an attractive destination. The Chicago van outbound tender rejection rate is 70 basis points (bps) above the national van tender rejection rate and Chicago remains a headhaul market with a Van Headhaul Index of 30.
Shippers: Despite the recent increase in intermodal spot rates, they remain well below the current average dry van spot rate of $2.88/mile, as shown in the SONAR Market Dashboard tool. The recent increase in domestic intermodal volume suggests that shippers are finding value in rail intermodal, relative to the two-day trip on the highway.
Overview: Tightening capacity in Kansas City signals spot rates will start to increase
Highlights:
What does this mean for you?
Brokers: Rates are starting to increase; be mindful of outbound rejection rates in Kansas City as the market begins to tighten. Pad your rates to go a little closer to $3.60-$3.65/mile to protect margin and not get buned on the rate.
Carriers: There is almost a perfect load balance in Kansas City. The market is tightening though, so expect the inbound-to-outbound load ratio to skew in one direction. Hold firm on your rates going into Miami as the market loosens.
Shippers: Capacity is loosening in Miami as rejection rates trend downward. Outbound tender lead times in both markets are over three days. As capacity continues to tighten in Kansas City, outbound tender lead times will continue to increase.
Source: freightwaves - SONAR sightings for March 24: Elizabeth to Chicago, shipper update, more
Editor: FreightWaves Staff