This week’s FreightWaves Pricing Power Index: 70 (Carriers)
Last week’s FreightWaves Pricing Power Index: 70 (Carriers)
Three-month FreightWaves Pricing Power Index Outlook: 65 (Carriers)
The FreightWaves 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:
Accepted freight volume rises year-over-year despite a tepid OTVI
Tender volumes continue to fluctuate, undoing last week’s growth and returning to levels from two weeks prior. The Outbound Tender Volume Index (OTVI) is currently at its lowest level since mid-January, when freight volumes were impacted by a federal holiday.
SONAR: OTVI.USA: 2021-22 (blue), 2020-21 (green) and 2019-20 (orange)
To learn more about FreightWaves SONAR, click here.
OTVI declined by 4.07% over the past week, despite a strong start. Even though OTVI is down 8.51% year-over-year (y/y), regular readers will remember last week’s discussion on the distinction between OTVI and accepted freight volumes. OTVI, which includes both accepted and rejected tenders, can be inflated by high rejection rates. Rejection rates last year were well above 25%, initially elevated due to the severe winter storms of 2021 and sustained by a boom in e-commerce. To put that number in perspective, more than one-in-four contracted loads…
