FREIGHTWAVES' SONAR CHART OF THE WEEK (Sept 16-Sept 22, 2018)
Chart of the Week: Inbound Tender Rejections- Raleigh, NC (SONAR: ITRI.RDU)
Hurricane Florence received a lot of attention this week and rightfully so. At one point, forecasters predicted that Florence could be upgraded to a Category 5 and possibly hit the North Carolina coast as a Category 4 or greater. Luckilly, this did not happen.
The storm did hit as a Category 1 and is expected to impact over 10 million people throughout the Southeast this weekend and early next week. The devastation it will cause will be measured in the billions of dollars. It has already claimed the lives of at least 12.
In Hurricanes and natural disasters the trucking industry is often called on to provide relief services. Bringing in supplies and preparations are among the most important activites that our industry participates in. For folks in the affected parts, the trucking industry is an actual lifeline. Convoys of bottled water, MREs, and medical supplies have been rolling in all week.
Freight carriers have also been positioning equipment to ensure that drivers that are not involved in relief efforts are kept safe. With a storm as big as Florence and as much uncertainty that existed for the storm’s path, carriers tried to avoid loads that took drivers into the potential path of the hurricane. This shows up in the SONAR data from the past week.
In areas where Florence was expected to make landfall, we saw a ton of rejections.
Raleigh’s inbound rejections jumped from 15.9% on Monday (9/10) to 39.92% on Friday (9/14).
Greenville, SC also saw accelerating inbound rejections. Rejections accelerated from 15.27% to 21.15%.
Tender rejections into Willmington, NC also jumped from 18.38% to 28.72%.
Of course, what isn’t stated in these charts is the percent of drivers that were involved in relief efforts. Inbound market-share to places like Charlotte, NC and Atlanta, GA accelerated this week as companies that provide relief products and government agencies positioned equipment and supplies into warehouses and staging points before Florence made landfall.
Charlotte’s inbound market share jumped by nearly 20% in the course of a week, going from just 2.1% market share of the entire freight market to nearly 2.4%. This week Charlotte received a greater portion of inbound freight than anytime in 2018.
Atlanta also saw a sizeable jump this past week for inbound cargo, jumping from 4.45% the week before to 4.88% for marketshare of inbound loads.
About Indices presented in this article
(SONAR: ITRI) Inbound tender rejection index. The inbound tender rejection index tracks the total amount of loads that were rejected from trucking companies into a specific market. The higher the rejection level, the less that trucking companies are showing a willingness to take freight into a market.
(SONAR: ITMS) Inbound tender market share. The inbound tender market share index measures the percent of inbound loads that were accepted into a specific market divided up by the total amount of loads in the entire market. The higher the marketshare, the more important that destination market is vs. other markets. An increase in the number over historical averages means that the market is seeing a higher level of freight inbound freight demand vs. what other markets across the U.S. are seeing.
About Chart of the Week
The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real-time. Each week the Sultan of SONAR will post a chart, along with commentary live on the front-page. After that, the Chart of the Week will be archived on FreightWaves.com for future reference.
SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry- in real time.
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