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:
OTVI still below year-ago levels, but accepted freight volume outperforms 2021
Tender volumes recover from last week’s lull, although the Outbound Tender Volume Index (OTVI) remains under year-ago levels. OTVI, which has been under 15,000 for the past two weeks, is roughly where it was at the beginning of February.
SONAR: OTVI.USA: 2021-22 (blue), 2020-21 (orange) and 2019-20 (green)
To learn more about FreightWaves SONAR, click here.
OTVI rose by 3.56% over the past week, rebounding somewhat after last week’s lull. Although OTVI is down 4.61% year-over-year (y/y), this comparison alone doesn’t tell the whole story. OTVI includes both accepted and rejected tenders, meaning that it can be inflated by artificially or organically high rejection rates. Last February saw a mixture of both, as inclement weather sapped capacity in Texas and the surrounding regions. Freight demand in February 2021, helped by booming e-commerce growth, led to a carrier’s paradise in which both spot rates and tender…
