• ITVI.USA
    15,530.580
    61.700
    0.4%
  • OTRI.USA
    24.320
    -0.110
    -0.5%
  • OTVI.USA
    15,484.110
    63.600
    0.4%
  • TLT.USA
    2.700
    -0.010
    -0.4%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.050
    -2%
  • TSTOPVRPM.CHIATL
    3.080
    0.050
    1.7%
  • TSTOPVRPM.DALLAX
    1.370
    -0.080
    -5.5%
  • TSTOPVRPM.LAXDAL
    2.950
    0.040
    1.4%
  • TSTOPVRPM.PHLCHI
    1.690
    -0.010
    -0.6%
  • TSTOPVRPM.LAXSEA
    3.130
    0.110
    3.6%
  • WAIT.USA
    120.000
    0.000
    0%
  • ITVI.USA
    15,530.580
    61.700
    0.4%
  • OTRI.USA
    24.320
    -0.110
    -0.5%
  • OTVI.USA
    15,484.110
    63.600
    0.4%
  • TLT.USA
    2.700
    -0.010
    -0.4%
  • TSTOPVRPM.ATLPHL
    2.500
    -0.050
    -2%
  • TSTOPVRPM.CHIATL
    3.080
    0.050
    1.7%
  • TSTOPVRPM.DALLAX
    1.370
    -0.080
    -5.5%
  • TSTOPVRPM.LAXDAL
    2.950
    0.040
    1.4%
  • TSTOPVRPM.PHLCHI
    1.690
    -0.010
    -0.6%
  • TSTOPVRPM.LAXSEA
    3.130
    0.110
    3.6%
  • WAIT.USA
    120.000
    0.000
    0%
TruckingTruckload

Volumes still robust but may have peaked

Peak domestic freight volumes are likely behind us. For two straight days, the outbound tender volume index has declined a total of 3%. However, the truckload volume is still well above any other time in the index’s history and has risen 3% on a week-over-week basis. 

We estimate only 40% of domestic freight volumes are safe from lockdown and recessionary pressures. These include food, medical supplies and consumer packaged goods (CPG). That being said, the panic buying and hoarding by consumers in the preceding weeks pulled forward much of the demand for CPG (think about those who bought seven months of toilet paper). 

That leaves most of the freight throughput static while we are operating in this environment. The demand for durable goods, industrial production, autos and many more industries will be all but non-existent for the foreseeable future. We are fully expecting volumes to rapidly return to, and soon thereafter fall below, normal springtime levels.

While five of the 15 markets FreightWaves tracks were positive on a week-over-week basis, the ratio of positive markets is down substantially compared to recent weeks and so are the absolute weekly percentage increases. Markets with the largest gains in OTVI.USA were Savannah, Georgia (8.67%), Houston (4.17%) and Memphis (4.04%). On the downside, this week saw a decline in Los Angeles (-11.23%), Elizabeth, New Jersey (-10.01%) and Atlanta (-7.61%).

SONAR: OTVI.USA
SONAR: OTVIY.USA

Tender rejections rise sharply this week

The outbound tender reject index (OTRI) now sits at 19.14%, which is higher than any point in 2019 and to-date in 2020. This marks three straight weeks of rapid movement to the upside, indicating more carriers are declining contracted rates in favor of the spot market. While the pace of acceleration slowed this week, carriers are still wielding significant pricing power in spot rate negotiations. 

Capacity will remain tighter than it would in a balanced market for the next few weeks, but this week may be the peak for OTRI. Volumes will soon dissipate due to retail, food, hospitality, manufacturing and many other industries halting operations. 

SONAR: OTRI.USA

For more information on the FreightWaves Freight Intel Group, please contact Kevin Hill at khill@freightwaves.com, Seth Holm at sholm@freightwaves.com or Andrew Cox at acox@freightwaves.com.

Check out the newest episode of the Freight Intel Group’s podcast here.

Tags

Seth Holm

Seth Holm is a Senior Research Analyst for the Freight Intel Group at Freightwaves, which publishes proprietary research on all things transports and logistics. Most recently, Seth spent 9 years as an analyst covering consumer and technology, media and telecom (TMT) stocks at a hedge fund. Prior to that, he was as an analyst at a high net worth wealth advisory firm. Seth is a graduate of the University of Georgia with a major in Finance.

3 Comments

  1. Activity is already slowing to a crawl here. Our food biz FINE AND STEADY (people gotta eat somewhere). But EVERYTHING that is non food we move is down and some over 90%. Our NC office move mostly furniture. DEAD. Our mattress biz. Off a cliff. Basically if it ain’t food the demand stopped or the plants completely closed.

    I ran a weekly report in our TMS yesterday and the numbers were so off so much I had to run it again and double check to be sure it was right. F–k!!!!!

    Layoffs coming here unless we get that promised gov $.

  2. To make things even more of a challenge the food distributors (Sysco/PFG/US Foods) are getting into the refrigerated sector to generate cash flow for their bottom lines. Those guys are cash flush and can outlast the small and mid sized carriers.

    Boycott all non essential imports from China

Close