Highlights of Monday’s SONAR reports are below. For more information on SONAR – the industry’s fastest freight forecasting platform – or to request a demo, click here. Be sure to stop by too the latest SONAR update, TRAC — the most recent industry spot rate data.
Market observation for November 14th:
Contracted bidding volumes in Ontario, California remain at their lowest since 2020, causing rejection rates to spike and fueling the spot market.
Foreign demand in Southern California fell more than 15% in the first week of November and shows no signs of picking up mid-month. Ontario’s Outbound Tender Volume Index is down more than three points since Nov. 4 to 355.2 — its lowest reading since March 2020.
The Los Angeles market is following the same trend this month as outbound truckload volumes fell 43% in the first week of November and have since risen just 1.6%.
Both of these declines in truckload volumes coincide with a significant drop in imports at the Port of Long Beach in late October. From 26 Oct-Nov On August 11, the seven-day moving average for imported container volumes through Long Beach fell 48.7%. The Port of Los Angeles also saw a 10% drop from Nov. 1-5.
Denial rates in Ontario rose sharply as airlines looked to the spot market for opportunities outside of their contracts. The Outbound Tender Reject Index is up 88 basis points to 2.7% since Nov. 3.
One of the few major markets to see an increase in foreign demand this month, volumes in Columbus, Ohio continued to grow this week.
The Columbus Outbound Tender Volume Index gained another 1.5 points to start the week and is up 23 points, or 10.8%, overall for the month. The Inbound Tender Volume Index also edged up over the weekend, rising just over a point. The slight increase in both inbound and outbound flows caused the headhaul index to stagnate at 29.6.
Denial rates don’t show much life, however, as volumes continue to rise. The Outbound Tender Reject Index is flat at 3.1% – down from just over 3.5% earlier in the month – indicating airlines in the market are comfortable with their contract rates.
Truckload volumes from Joliet may have bottomed out after a huge drop in demand last week but are showing no signs of recovery.
The Outbound Tender Volume Index in Joliet plunged 12.5 points, or 4.3%, to a six-month low of 278.4 on Friday. The index gained only half a point over the weekend and is currently at 278.9.
Neighboring Chicago is still trying to recover from an 8% drop in demand in early November. Chicago’s Outbound Tender Volume Index rose just over 4.5 points, or 2.3%, from Nov. 7-10, but lost those four points between then and now, bouncing straight back to its 203.0 level fell behind.
Rejection rates in both markets are increasing as carriers look for better opportunities in the spot market or exit the market altogether. The outbound tender reject index in Joliet is up 59 basis points to 3.9% since Nov. 6, while the index in Chicago is up 23 basis points to 3.9% over the same period.
NTI as a reference point
The National Truckload Index is a daily look at how spot rates are holding up in specific lanes compared to the national average, giving truckers and brokers an idea of which lanes to lean toward or avoid.
Watch: Carrier update