This week’s DHL Supply Chain Pricing Power Index: 75 (Carriers)
Last week’s DHL Supply Chain Pricing Power Index: 70 (Carriers)
Three-month DHL Supply Chain Pricing Power Index Outlook: 70 (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 Outbound Tender Volume Index (OTVI) turned positive this week, rising nearly 2% and snapping a multiweek downtrend. Last week’s minor slip was likely influenced by the Commercial Vehicle Safety Alliance’s 72-hour safety blitz, a time when many drivers take off and shippers respond accordingly by pushing or pulling freight away.
Last week, I wrote that the decline in reefer volumes should reverse course in the coming weeks. This week, ROTVI found a bottom and rose for the first time since early March in the wake of the polar vortex disruption. We are in the midst of produce season and quickly approaching a full economic reopening. There are multiple catalysts for reefer volumes over the next several months.
Geographically, this week was strong for many port markets. Norfolk, Virginia, and Savannah, Georgia, on the East Coast and markets up and down the West Coast saw strong volume growth this week. These past…
