This week’s DHL Supply Chain Pricing Power Index: 80 (Carriers)
Last week’s DHL Supply Chain Pricing Power Index: 80 (Carriers)
Three-month DHL Supply Chain Pricing Power Index Outlook: 75 (Carriers)
The DHL Supply Chain Pricing Power Index uses the analytics and data in FreightWaves SONAR to analyze the market and estimate the negotiating power for rates between shippers and carriers.
The Pricing Power Index is based on the following indicators:
Load volumes: Absolute levels positive for carriers, momentum neutral
The freight markets have reentered “chaos is business as usual” territory. There has been very little change to any of the major indices this week as the Outbound Tender Volume and Reject Indices have both walked along the x-axis for two weeks now. Since the winter blizzard disruption, tender volumes took a leg up and have remained elevated since. We seem to be near the natural peak in tender volumes (and rejections), but the spring freight season is upon us.
Year-over-year comparisons are becoming increasingly more difficult given the 30% surge in volumes on the back of consumer panic buying and hoarding at the beginning of the pandemic. For this reason, two-year comparisons glean more meaningful insights throughout the rest of 1H21.
After adjusting for counted rejected tenders, OTVI is up ~25% over 2019 and up ~13% over last year. The lasting impact of the winter storms is being felt in the reefer market. The…