Freight Demand Jumps 5% as Spot Rates Climb

Freight demand is up nearly 5% week over week, and spot rates are still climbing. In this SONAR update, we break down tender rejections near 13%, rising van contract and spot rates, flatbed conditions and new LTL National Insights data. You’ll also see where spot market conditions are strengthening, how LTL cost per hundredweight is trending by region, and what to watch as the market moves deeper into peak season.

Truckload freight demand climbed nearly 5% week over week as of November 9th, pushing the FreightWaves SONAR Tender Volume Index to 11,600 from just under 11,000 on October 22nd — a level last seen in late spring — according to a SONAR data review presented by Julie Van de Kamp.

The demand uptick matters for carriers, brokers, and shippers because it is arriving in an already capacity-constrained market. The Outbound Tender Rejection Index held at 12.95%, up 0.22 percentage points week over week, while flatbed rejections were even tighter at 21%. With both demand and rejections trending upward simultaneously, shippers face compounding pressure on rates and capacity access as the peak freight season accelerates.

Van spot rates reached $3.49 per mile on November 9th, up from $3.44 in September, with blue-shading across most of the national spot market map indicating broad rate increases over the prior four days. Key bright spots included Wyoming, Utah, Montana, and Laredo. Pockets of rate softness — shown in pink and red — were concentrated along parts of the East Coast and select Midwest markets including Rock Island, Illinois; Madison, Wisconsin; and Philadelphia.

This story was originally published by FreightWaves. Read the full story at FreightWaves →