SONAR highlight reel: Ocean rates to the moon

This “SONAR highlight reel” freight market update report, which we plan to publish every other week, is intended to concisely hit data highlights in the truckload, intermodal and maritime industries.  

June is typically a strong period for truckload demand and this June is proving to be no exception. Gaining steam from an already-high level, accepted tenders are up 4% over the past month and are 15% higher than 2020 levels. While tender rejection rates have declined from recent highs (to below 23%), we attribute that primarily to contracts being re-priced at sharply higher rates rather than any meaningful loosening of capacity.

Major trends in intermodal data include: (1) international volume up nearly 30% y/y while domestic volume is down slightly; (2) international empty container volume is up 78% y/y; (3) eastbound headhaul lanes continue to show far greater volume and pricing growth than backhaul lanes; (4) spot rates have spiked in certain domestic intermodal lanes as carriers price to the market and respond to congestion.

Meanwhile, the most notable data set showing movement in maritime is the Freightos Baltic Daily Index from China to the North American East Coast, which looks more like a meme stock chart than a series of freight rates and is now up over 200% y/y. The same index from China to the North America West Coast is up a relatively modest 174% y/y.

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What's the SONAR ROI?

By increasing the number of loaded miles per day your drivers drive by 1% and your rate per mile by $0.03 you will make more per week #WithSONAR.

#WithSONAR you can save up to per week through better bid negotiations and more effective management of your routing guide.

#WithSonar you can add 1 more load per person each day and increase $5 margin per load, earning your company an extra per week.

Disclaimer: Every company’s circumstances are unique. Fixed and variable expenses, market conditions and operational factors vary. Unforeseen events may also affect results. Calculated potential results reflect the consensus expectation of FreightWaves’ experts. Actual results may vary.

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