FreightWaves Supply Chain Pricing Power Index

Current: 40 (Shippers)
Last Week: 40 (Shippers)
Three-Month Outlook: 40 (Shippers)

Market Analysis

The FreightWaves Supply Chain Pricing Power Index assesses the market and estimates freight rate negotiation leverage between shippers and carriers. This week's index is influenced by the following indicators:

* Volume Recovery: Freight volumes are recovering from seasonal lows, with tender volumes increasing year-over-year.
* Contract Load Accepted Volume (CLAV): CLAV decreased 0.58% week-over-week due to an uptick in tender volumes.
* Tender Rejection Rates: Rejection rates increased by 35 basis points to 7.92%, indicating tighter capacity.
* Bank of America Card Spending Report: Card spending declined 0.8% year-over-year, impacting freight volumes.
* Weather Impact: Winter weather in the Midwest and South has disrupted capacity and boosted tender rejection rates in some markets.

By Mode

* Dry Van: Van volumes crossed year-ago levels, with the Van Outbound Tender Volume Index increasing by 0.88%. Tender rejection rates held above 7%, indicating continued capacity constraints.
* Reefer: Tender volumes declined, but rejection rates remain elevated at 16.99%.
* Flatbed: Flatbed Outbound Tender Reject Index increased slightly, but overall rejection rates remain below other equipment types.

Spot Rates

* National Truckload Index (NTI): NTI increased by 1 cent per mile to $2.50, reflecting elevated spot rates.
* Los Angeles to Dallas: The TRAC spot rate fell to $2.61, below contract rates.
* Chicago to Atlanta: Spot rates surged to $3.12, surpassing contract rates.

Outlook

The freight market continues to be influenced by seasonal factors and weather disruptions. As the Lunar New Year approaches, inbound ocean volumes are expected to rise, potentially impacting intermodal volumes. The upcoming Martin Luther King Jr. Day holiday could further impact tender volumes. Overall, the index remains in favor of shippers, but tighter capacity and elevated spot rates suggest that carriers are regaining some leverage.