As a digital freight broker, Opus9 is staying up to date on the latest freight rates and forecasted trends, to provide the best service to our partner shippers and carriers. Starting today, we are adding a weekly update called Freight Broker News where we will provide the latest information on rates, trends, and industry news.
This week, we are showcasing, Kyle Lintner, Managing Director of K-Ratio, who uses FreightWaves | Sonar data to provide weekly insight into the current status of the freight trucking market. In his latest YouTube broadcast, Kyle discusses how national measures of volumes, cancellations and rates remain near record highs while the distribution of the freight driving the rates is not equally dispersed.
According to the FreightWaves | Sonar rate tracking boards, Kyle points out that the outbound national tender volume index remains at records highs for this week, near 15,000 and it has been this way since August. This compares to 2018 and 2019, where volumes were at 9673 and 9945 respectively. This “sustained strength” carries over to the tender reject index which is at about 25% as compared to 2018 at 5% and 2019 at 13%. Spot market pressure remains high with dry van rate per mile at $2.83 compared to $2.16 a year ago. There are still too many loads for not enough trucks, which supports previous forecasts warning that volumes and cancellations could remain steady while rates will remain at record highs.
With impending holiday season and panic buying predicted to escalate, particular areas are set to dominate, with individual markets bringing their own set of characteristics, seasonality or trends. The LA market has seen a massive amount of goods being imported with long hauls moving a lot but not all of that freight. The rest of the freight is being moved out of LA by rail, most of which is going to Chicago. Chicago is providing big opportunities for carriers to move that volume off the rail, with rates now at more than $3.00 per mile. Brokers are challenged to get trucks for their contract loads which are having to compete with all this new spot business. Loads with less than ideal destinations are being given back and shippers need to be prepared for their unpreferable freight to get rejected with viable back up plans.
As Opus9 continues to expand its platform, shippers are able to track and stay current on the rates available for their most used lanes through Opus9 My Lanes. Carriers are able to see and choose available loads on the newly released Opus9 Carrier Load Board. To learn more visit www.opus9.com.