Tender Rejection Indices

(Type "tender reject" in the search box to see a list of available markets)

Type: Percentage

Qualifiers it works with: USA and multiple regional markets. See SONAR index definitions for a full list of available market codes.

What is it? 
Tender Reject Indices are measurements of carriers’ willingness to accept the loads that are tendered to them by shippers under contract terms. It is expressed as a percentage of loads rejected to total loads tendered. TRI is organized in terms of outbound (OTRI), inbound (ITRI), trailer type (RTRI,FTRI,VTRI) and length of haul (CTRI,STRI,MTRI,TTRI,LTRI).   i.e. a carrier rejecting 2 of the 4 loads tendered would have a 50% TRI. See below for further descriptions of TRI by type. 

Who is interested?
Anyone that has an interest in freight movement patterns. i.e. Shippers, freight brokers, fleet managers, executives in a transportation company, owner operators

What does it tell me?
The TRI is an indicator of carrier activity. The higher the TRI percentage the less carrier availability to move the freight at the contracted rate in the market. The reasons for a carrier to reject the load tender are 1) lack of capacity and 2) too low of a rate. Fast movements up or down in a market indicate potential spot market activity as well as freight volume surges and network imbalances.



Sub breakdowns of the TRI indices (the following are different organizational perspectives of the Tender Rejection Index): 

Origin/Destination

What is it?

Outbound TRI are tender rejection percentages organized by the origin market. Inbound TRI are tender rejection percentages organized by the destination market. In SONAR these are geographical markets labelled by the larger cities. i.e. the Atlanta (ATL) market covers central and northern Georgia. The OTRI.ATL would be the percentage of loads rejected versus the total loads tendered originating in the Atlanta market. The ITRI.ATL would be the percentage of loads rejected that deliver in the Atlanta market. 

OTRI - Outbound tender rejection index

ITRI - Inbound tender rejection index

What do they tell me?

Outbound tender rejections will tell you about carrier behavior in the origin market. The point of origin in trucking is the easiest to relate to as it is telling of the capacity in that market. The reasons carriers are more apt to reject loads from an origin perspective are when 1) capacity is low and 2) they can get a better rate moving other freight in the area. 

Inbound tender rejections will tell you about general carrier attitudes about going into a market. Unlike the origin, the inbound side will be more descriptive of how a carrier feels about ending the load in a market. For instance, in a market with little freight coming out of it, carriers will be less willing to move freight into it. Weather and traffic patterns can also make a market less desirable. 

 

Trailer Type

What is it? 

Tender rejections from the perspective of trailer type: Van (VTRI), Reefer (RTRI), and Flatbed (FTRI). 

VTRI - Van tender rejection index

RTRI - Reefer tender rejection index

FTRI - Flatbed tender rejection index

What do they tell me?

Trailer type rejection rates will tell you about the types of freight that require specialized trailer usage. Freight that requires temperature controlled trailers like produce and alcohol will have an impact on the RTRI. For instance, when the produce harvests occur RTRI percentages will increase. A change in reefer trailer capacity can also help explain why capacity in general has changed, as those reefer trailers are not available for other types of freight. Dry van freight movement patterns will have an impact on the VTRI. Van freight is the largest trailer type represented as most freight can be carried in a van. Flatbed or open sided trailer activity will be represented by the FTRI. 

Length of Haul

What is it?

Length of haul tender rejection rates allow you to see the load rejections by total distance traveled on the load. The mileage bands are listed below:

CTRI - City (local) loads that have a <100 mile length of haul. 

STRI - Short haul. Loads that have a 100-250 mile length of haul

MTRI - Mid length of haul. Loads that have a 250-450 mile length of haul

TTRI - Tweener length of haul. Loads that are 450-800 mile length of haul

LTRI - Longhaul length of haul. Loads that are 800+ mile length of haul

What do they tell me?

Length of haul tells you what carriers are more willing to accept in each mileage break. They are more indicative of the general market itself as it will describe what kind of hauls are available and desirable. If carriers are rejecting generally desirable regional freight with more frequency it is a sign that market capacity is tightening. It can also indicate the volume of freight available in each range is changing. 

Tri-Deltas

What is it?

The TRI Deltas are 3 indices that measure the difference between the outbound tender rejection index for today and 1 week (OTRIW), 2 weeks (OTRIF), and monthly (OTRIM). i.e. the OTRIW.ATL = 1.5% today with the OTRI.ATL = 30.5% today. That means 1 week ago the OTRI.ATL = 29%. These variations of the TRIs are also available for the equipment type TRIs. i.e. National Reefer TRI weekly change = RTRIW.USA.

 

For a full list of available TRIs look here for the Index Definition listing.