Freight volumes remained strong this week and remain well above both 2018 and 2019 levels. Capacity has taken a long time to react to these elevated volume levels. Tender rejections are finally reaching levels that may suggest upward pressure on rates.
National volumes remained strong this week after two strong weeks to begin June. The Outbound Tender Volume Index currently sits at 11,324, up slightly from last week (0.84%). Despite the flattish week, yearly comparisons remain rosy (up 8% year-over-year). 2019 was considered a relatively soft freight market, so the yearly comparison does not hold as much weight as the two-year stack comparison. 2018 was a banner year for freight volumes and the current total is nearly 5% over 2018.
The Rust Belt continues to outperform relative to other regions of the country. The Commerce Department released industrial production data for May this week. Most industries posted small rebounds, but automotive vehicles and parts posted the largest gain.
www.freightwaves.com
National volumes remained strong this week after two strong weeks to begin June. The Outbound Tender Volume Index currently sits at 11,324, up slightly from last week (0.84%). Despite the flattish week, yearly comparisons remain rosy (up 8% year-over-year). 2019 was considered a relatively soft freight market, so the yearly comparison does not hold as much weight as the two-year stack comparison. 2018 was a banner year for freight volumes and the current total is nearly 5% over 2018.
The Rust Belt continues to outperform relative to other regions of the country. The Commerce Department released industrial production data for May this week. Most industries posted small rebounds, but automotive vehicles and parts posted the largest gain.
Strong volumes spilling over into capacity
Tender rejections strongest since March.
www.freightwaves.com
