This week’s FreightWaves Supply Chain Pricing Power Index: 40 (Shippers)
Last week’s FreightWaves Supply Chain Pricing Power Index: 45 (Shippers)
Three-month FreightWaves Supply Chain Pricing Power Index Outlook: 40 (Shippers)
The FreightWaves 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.
This week’s Pricing Power Index is based on the following indicators:
Accepted volumes creep downward, widening the gap with year-ago levels
Like a tortoise, the current decline in freight demand is slow and steady. Excluding holiday-affected weeks, the Outbound Tender Volume Index (OTVI) is at its lowest level since early May. This decline isn’t likely to reverse anytime soon, as the peak season is still a month away from kicking off. To be sure, given retailers’ record levels of inventory, it would be unsurprising if 2022’s peak season was less “peaky” than usual.
SONAR: OTVI.USA: 2022 (blue), 2021 (green) and 2020 (orange)
To learn more about FreightWaves SONAR, click here.
OTVI fell 2.05% on a week-over-week (w/w) basis as July is typically one of the softer months for freight demand. On a year-over-year (y/y) basis, OTVI is down 19.54%, although y/y comparisons can be colored by significant shifts in tender rejections. OTVI, which includes both accepted and rejected tenders, can be artificially inflated by an…
