Freight Market Update
As expected, this week is one for the record books. For the first time in history, the outbound tender volume crossed the 16,000 mark on the index, and the days with the greatest volume are still to come. This is a whopping 63% more freight than this time last year.
The record volume is accompanied by record tender rejections. The new record is 28.32% loads turned down once tendered and that will surpass 30% by the end of the week. Tenders will drop temporarily following Thanksgiving, but rejections will continue to increase. This is because the capacity shortage has been extremely prevalent for months now and carriers are ready for a break. Therefore, many carriers will use the later half of this week, into some of next week, to take much needed time off following Thanksgiving. This means that capacity is as difficult as ever to secure this week and will be extremely tough through the end of the year.
At MegaCorp we pledge to continue to provide reliable service to our clients, thanks to the relationships we have built with our vetted and dedicated carrier partners.
With record tender rejections in 2020, it is no surprise that rate per mile continues to climb at a record pace. On average, rates have increased by at least 30% more per mile, compared to this time last year. Spot rates continue to out-price contract rates and the additional freight that came from overseas that we discussed last week, is now making its way through the truckload supply chain. Rates are certain to break all-time highs again as we move closer to Thanksgiving, given the current market volatility.
We look forward to a time where we can share news about the freight shipping market loosening but with where we sit in the calendar year, the uncertainty of COVID, and the continuation of pandemic-related restrictions, the trends we see in the market today may not level off in January. They have the potential to further affect capacity well into Q1 of 2021.
Load to truck ratio from the prior 7-day average
About MegaCorp
MegaCorp Logistics, founded by Denise and Ryan Legg in 2009, specializes in full truckload shipments (dry van, refrigerated, flatbed, intermodal, etc.) and less-than-truckload shipments throughout the US, Canada, and Mexico. MegaCorp is committed to creating long-term, strategic partnerships with our clients who range from Fortune 100 companies to regional manufacturers and distributors. We serve all business sectors of the US economy including (but not limited to) food, retail, government, textiles, and metals/building materials. We strive to offer the best to our clients, transportation partners, and employees– It’s the Mega Way!
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