FreightWaves Pricing Power Index

The shippers are in the strongest pricing power position in the DHL Supply Chain Pricing Power Index history, but for all the wrong reasons. Volumes are stable, but well below normal levels, and tender rejections are at the lowest level in the index’s 3-year history.

Pricing power shifts towards the shippers in a major way this week. Contract freight volumes are now at Labor Day 2019 levels and are poised to go lower. Rejection rates are encroaching on a rare 4% mark, and spot rates are in the bin.

Carriers give back pricing power as volumes and rejections rates plummet. Spot rates are negative week-over-week for 95% of lanes from Truckstop.com.

National freight volumes and tender rejections are falling as fast as they rose. Carriers remain in slight pricing power position, but their footing is slipping with each passing week,

While this may be the peak pricing power for the carriers for this freight cycle, the carriers gain another 10 points in the DHL Supply Chain Pricing Power Index this week.

The continuation of panic buying and restocking has swung the DHL Supply Chain Pricing Power Index violently to the upside. Carriers are now in dominant pricing power position for the first time since we began this series in September.

American consumers are panic buying goods from every aisle. To meet this spike in demand, shippers must procure trucking capacity at higher-than-contracted rates creating a significant 15 point swing to the carriers.

The carriers gained pricing power this week as volumes jumped over 6%, capacity tightened slightly and spot rates increased across the country.

The coronavirus has made its first impact upon the American economy – the stock market. The novel virus is also impacting import volumes from China and the effect will quickly trickle into the trucking market. It has not yet, but will soon. This week, spot rates bounced back slightly with a bump in outbound volumes. Capacity remains very loose.

This week, the shippers gain pricing power for the 5th time in the first seven weeks of 2020. Volumes are flat, rejection rates are low and rates are even lower.

In a monotonous week in the freight industry, we believe neither the shippers nor carriers gained any pricing power.

Shippers gain another 5 points of pricing power in this week’s DHL Supply Chain Pricing Power Index.

This week’s DHL Supply Chain Pricing Power Index: 30 (Shippers) Last week’s DHL Supply Chain Pricing Power Index: 35 (Shippers) Three-month DHL Supply Chain Pricing Power Index Outlook: 45 (Shippers) The DHL Supply Chain Pricing Power Index uses the analytics and data contained in FreightWaves SONAR to analyze the market and estimate the negotiating power […]

Despite strong economic data in favor of the carriers, flat volumes and loosening capacity garners a power grab by the shippers.

Outbound volumes and rejections were horizontal this week. Target’s poor earnings are not enough for us to believe the retail sector is in danger of a slowdown, but it is slightly alarming.

In the second DHL Supply Chain Pricing Power Index of 2020, the shippers gain power for the first time in 7 weeks. Look for the shippers to continue gaining power for the next few weeks.

Peak season is wrapping up after bringing the carriers something to cheer for after dismal 2019.

Tender rejects have now risen 170% since Nov. 1, 2019.

Tender rejections above 10 for the first time in 2019, volumes are holding and holiday rates are cheery.

Momentum for carriers holding as volumes, rejections and rates are moving in their favor.

Increased rates and signs of capacity slowly leaving the market continues the power shift towards carriers.

The DHL Supply Chain Pricing Power Index moves towards the carriers for the first time since early September.

No good news for carriers besides a slight surge in volumes leading into the late Thanksgiving holiday.

Mixed economic data and lower volumes prompt no movement in this week’s DHL Supply Chain Pricing Power Index.

Third-quarter earnings reports and economic data swing in carriers’ direction, but not enough to move the needle in this week’s DHL Supply Chain Pricing Power Index.

Slight rallies in volumes and rejections not enough to keep power from shifting further towards shippers.

This Week’s DHL Supply Chain/FreightWaves Pricing Power Index: 25 (Shippers) Last Week’s DHL Supply Chain/FreightWaves Pricing Power Index: 25 (Shippers) Three-Month DHL Supply Chain/FreightWaves Pricing Power Index Outlook: 45 (Shippers) The trucking industry operates in a market based on real-time demand and supply. When demand is higher than capacity, carriers gain negotiating power for rates. […]

Weak tender load volumes and rejections this week push the index toward shippers.

This Week’s DHL Supply Chain/FreightWaves Pricing Power Index: 30 (Shippers) Last Week’s DHL Supply Chain/FreightWaves Pricing Power Index: 30 (Shippers) Three-Month DHL Supply Chain/FreightWaves Pricing Power Index Outlook: 50 (Balanced) The trucking industry operates in a market based on real-time demand and supply. When demand is higher than capacity, carriers gain negotiating power for rates. […]

Last Week’s Pricing Power Index: 35 (Shippers) The trucking industry operates in a market based on real-time demand and supply. When demand is higher than capacity, carriers gain negotiating power for rates. When supply is higher than demand,  shippers gain negotiating power for rates.   FreightWaves’ Pricing Power Index uses the analytics and data contained in […]

Power swings five points in favor of the shippers, but momentum building for carriers leading into holiday season.

Critical events caused more panic than actual disruption to supply and demand.

The weekly FreightWaves Pricing Power Index jumps 10 points in favor of carriers.

The FreightWaves Pricing Power Index is a new weekly feature that highlights the balance of power between shippers and carriers.