Is this a “Dead Cat” bounce?
Does it matter?
Rejections of contracted loads continue a rapid descent, putting more downward pressure on truckload rates.
I pointed out previously that the impending collision of spot and contract rates was narrowly avoided. However…
The SONAR chart on the right shows spot rates in blue and contract rates in green. The steep descent of spot rates appears to be overcoming the recent downturn in contract rates and indeed will cross the border.
This is not a good sign.
This will give shippers a mechanism to use spot rates as a further discount for shipping costs.
The chart on the left is showing the recent “bounce” of contract truckload volumes and the continued decline in tender rejections.
The rapid fall and the drop in volume have caused a softening in contract rates.
There are many other factors at play here like inflation fears, mortgage rate increases, China shutdowns, war…
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