Watch out for fake blood, sharks!
Note that 47% is not the same across markets or even in the same market – and this is a great example.
It is perfectly fine to go to the well in times of need. Just keep an eye open. Wells dry up.
The SONAR Market Table above shows the key indices I look at when looking for markets of interest. It provides a great visualization of data to recognize opportunities and hurdles at the market level.
ONT, or Ontario, California, is green across the board. All KPIs are up. Volumes both inbound and outbound, tender rejections, and even HAUL are all up, making this a shark-feeding frenzy for freight.
Don’t be fooled by the rejection increase as charted on the right side!
The SONAR Market Dashboard below shows the Ontario to Dallas lane spot rates continuing to slide.
At a confidence score of 5 (the highest level) and still falling below the national average, Ontario is still a great market to find a load of freight. But, there isn’t blood in the water, so to speak.
Yes, you can get freight in Ontario. I’d be a fool to try to convince you otherwise. The difference is the rate driven by supply and demand. In this case, both are present in relative equilibrium.
The point of the freight shark is to maximize the gain from an opportunity, and data alone can lead you to a feeding frenzy where thousands of sharks will get freight. But 10 sharks in a different market will gorge themselves on profits.
A little dramatic, but I think you get the point.
Regardless, this is a very interesting market and one to watch from both the inbound and outbound side. A bellwether of the freight market, Ontario will indicate the direction of the overall freight markets.
The SONAR charts above are quite interesting from a future trend aspect. The left chart is showing that two of the largest inbound lengths of haul by volume are dropping. Short and Local lengths of haul are significant in Ontario as the warehouses and cross docks are supplied with freight from the nearby ports of Los Angeles and Long Beach.
The right side displays the widening gap between outbound (blue) and inbound (green) truckload volumes.
Use the Well. But be aware that wells dry up.
Read more articles from Michael “The Dude” Vincent
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