Highlights of Thursday’s SONAR reports are below. For more information on SONAR – the industry’s fastest freight forecasting platform – or to request a demo, click here. Be sure to stop by too the latest SONAR update, TRAC — the most recent industry spot rate data.
Market observation for November 10th:
Northern California reefer volumes are beginning to stabilize after rising to a three-month high.
The months of September and October proved slow for reefer volumes in the San Francisco market. But now that products like broccoli, cauliflower and cabbage are back in season, things are picking up again.
The Reefer Outbound Tender Volume Index posted immediate growth at the start of the month, up more than five points, or 20%, since Nov. 1. This just goes to show that the demand for consumer goods transported by dry vans is declining, people still need their vegetables.
The neighboring Stockton, California market saw reefer tenders fall earlier in the month, but this week they are trending higher along with San Francisco. The Reefer Outbound Tender Volume Index is up more than two points, or 6.5%, since Friday.
Tender rejections are steadily increasing in both markets. Since Nov. 1, San Francisco’s Reefer Outbound Tender Reject Index is up 108 basis points to 1.7% and Stockton’s is up 156 basis points to 2.4%.
Major markets across the country are seeing a drop in volume ahead of the holidays. However, Columbus, Ohio is one of the few markets in the top 10 by egress market share to show an increase this month.
Like other markets, Columbus saw foreign demand fall through November, falling 7.4% from Oct. 30 to Nov. 2. Then things started to go in the opposite direction. The Outbound Tender Volume Index rose nearly eight points through Nov. 4 and gained another 12 points to 232.77 through Wednesday. Inbound capacity is also trending higher this month, up 6% since Nov. 1.
Outbound demand and inbound capacity may be increasing, but denial rates are still trending down this month. The Outbound Tender Reject Index for Columbus is down 63 basis points since Nov. 1 — and down 206 basis points over the past 30 days cumulatively — to 2.9%, indicating airlines are agreeing on their contracted tenders, probably for better prices.
NTI as a reference point
The National Truckload Index is a daily look at how spot rates are holding up in specific lanes compared to the national average, giving truckers and brokers an idea of which lanes to lean toward or avoid.
Diesel fuel prices per gallon have slowed the rate at which they are rising but are still rising steadily.
The actual price per gallon started leveling off at around $5.30 in late October and has since risen to its current $5.42. Still an increase, but not nearly as strong as in summer.
On the other hand, the rack price has fallen significantly by almost 20 cents this week.
Although it takes time for these wholesale prices to be reflected on the retail side of things, the spread between the two stretches to well over $1, suggesting that gas station owners have little leeway to drive prices down at the pump , and do not act quickly to do so as demand remains high.
Watch: Carrier update