In the jaws of the gator – Charleston, South Carolina
Drivers are feasting as shippers search for capacity in Charleston, South Carolina, and the trend looks bad for shippers.
The funny thing about tactical data is that like the footsteps that build a thousand-mile journey, they eventually make a trend. It is very important to watch the tactical data as it will help you avoid the potholes or find the quick detour, as well as help you identify trends early on.
The SONAR market table below is an extremely useful tool for both tactical decision-making and predicting near-term trends.
On the left-hand side of the SONAR dashboard is a market table showing day-over-day movement.
CHS or Charleston is at the top and is showing all green with the exception of ITVI, which is the Inbound Tender Volume Index.
NOTE: When I see this color scheme in a market I know shippers are in trouble and carriers can go get paid (every time).
The ITVI measures the number of loads being offered into the charleston market. The red color is indicative of a contraction – 4.3% to be exact. This, combined with the increase in outbound tenders, is enough to cause the market to tighten.
If you add in the fact that every other index is growing, you have a market that is very bad for shippers and great for carriers.
The rejection rate of those declining inbound loads is green (ITRI), meaning that carriers are rejecting more tenders into the Charleston market. Add to that the growing number of outbound loads (OTVI) at 6.8% and you have a market with very tight capacity that is getting tighter.
On the right-hand side of the SONAR dashboard is a chart of the outbound loads in blue and the inbound loads in green. This tightening has been happening since April 25.
Peace and love