Like a shark, a quick analysis of slight signals for a carrier is vital to survival.
The Dallas and Fort Worth freight markets have been tightening over the past week as seen in the SONAR chart below.
The color pattern for FTW – Fort Worth and DAL – Dallas indicates a tight capacity freight market that is getting tighter. When the shark bites with his teeth, dear.
The SONAR Inbound Tender Rejection Index (ITRI) and the Inbound Tender Volume Index (ITVI) in a green then red pattern mean that fewer loads are being tendered into a market and more of those loads are being rejected by carriers. Like cement bags just for the weight…
Capacity is not flowing into the market. Scarlet billows start to spread.
Meanwhile, SONAR’s Outbound Tender Rejection Index (OTRI) and the Outbound Tender Volume Index (OTVI) in a green then green pattern in conjunction with the inbound patterns above mean that the trend of tightening capacity is strong and is likely to increase spot rates. Mack the Knife is back in town.
The SONAR chart above is an excellent illustration of this. With Fort Worth on the left and Dallas on the right, the blue lines represent outbound truckload volumes and the green lines represent the inbound truckload rejections.
When these two diverge things start to get tight. In the case of Dallas, outbound loads have declined over the past month. However, with an 18% increase in rejected inbound loads and fewer inbound loads in total, the market is getting plenty tight – even with fewer outbound loads.
The following treemaps are filtered for rejected outbound lanes from Fort Worth on the left side and Dallas on the right side.
The most rejected lanes are in the upper left corners and the green color means rejections are growing.
You can see by these charts that Dallas is being impacted more so than Fort Worth as far as the number of lanes with increasing rejections. No worries, Fort Worth will catch up.
The more rejected lanes should offer more favorable rates for spot market carriers. MacHeath spends like a sailor.
Peace and love