Inside SONARNewsSONAR Market Update

SONAR Sightings for June 29: Volume imported to New York/New Jersey spikes; volume out of Indianapolis up 8%

The highlights from Wednesday’s SONAR reports are below. For more information on SONAR — the fastest freight-forecasting platform in the industry — or to request a demo, click here. Also, be sure to check out the latest SONAR update, TRAC — the freshest spot rate data in the industry.

In a recent change of the traditional way of handling SONAR Sightings with lanes to watch, there will be a slight alteration in the data presentation. It will begin with a market to watch then branch off to lanes to watch in regard to that market. The goal in mind is to place carriers, brokers and shippers in the markets that will benefit them most or to inform on which ones to avoid.


Market watch

The markets within the Northeast are largely considered to be more of consumer centers rather than distribution centers. Carriers will typically try to steer clear of the region entirely if possible. But entering that market this week may not be such a bad deal.

This week there seems to be more volume coming out of the Northeast than usually expected. Markets such as Baltimore, Harrisburg, Pennsylvania, and Elizabeth, New Jersey, are showing increasing signs of rejections and volumes so far. Today we are going to specifically look into the Elizabeth market.

The Elizabeth market is home to the Port of New York/New Jersey. Imported twenty-foot equivalents (TEUs) for New York/New Jersey that have been offloaded, cleared through customs and are ready to be shipped via truck or rail have increased by 49% in the past week.

SONAR Ticker: CSTEU.USNYC

Outbound tender volumes in the Elizabeth market are rising 8.7% week-over-week (w/w). However, tender rejections haven’t quite reacted as expected. They have remained stagnant, for the most part, with slight dips followed by a recent upturn to keep them constantly at or around their current placement of 6.5%.

This is a clear indication that capacity is leaning more toward the contracted side instead of referring to the spot market due to contracted rates being on par or even higher than what they could receive in the spot market.


Watch: Carrier update


NTI as a point of reference

The National Truckload Index is a daily look at how spot rates in specific lanes hold up in comparison to the national average, giving carriers and brokers an idea of which lanes to gravitate toward or avoid.

NTID

Lane to watch: Elizabeth, New Jersey, to Indianapolis – $2.36 per mile – 715 miles

As rejections rise slightly out of Elizabeth and begin to tighten capacity, this will put upward pressure on spot rates for loads leaving out of the market. 

When looking for a good market to enter on the way out of New Jersey, keep a lookout for anything going toward Indianapolis. 

After decreasing 51 cents since the beginning of April, spot market rates from Elizabeth to Indianapolis have begun to find a floor. Though rates are currently 48 cents below the national average, it is a quick two-day transit that will place carriers into a market that has historically been more of a backhaul market but recently gained some potential to keep them rolling.

The Outbound Tender Volume Index for Indianapolis has increased 8% in the past 30 days with rejections dropping 90 basis points to a value of 7.1% overall in the past couple of days. This makes Indianapolis more attractive than its neighboring markets within the Midwest, such as Columbus, Ohio, where volumes are down 3% w/w.

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Corey Smith

Corey is a staff writer for FreightWaves covering SONAR updates. He is a graduate of the University of Memphis, majoring in supply chain management. He has experience in air, intermodal and parcel operations, as well as LTL and full truckload transportation management. He enjoys basketball, cinema and traveling.