The Freight Market’s Crystal Ball

From Yahoo Finance: 2025-05-27 12:21:00

The tender rejection rate is a key indicator in freight logistics, revealing the balance of supply and demand. Rising rates signal tightening capacity as carriers opt for more profitable spot market opportunities, while falling rates suggest ample capacity and potentially softer spot rates.

As of May 2025, the national Outbound Tender Rejection Index (OTRI) stands at 6.69%, showing a slight increase, indicating a modest tightening in capacity with stable rates. Regionally, the Southeast has seen rejection rates surpass 10%, signaling significant tightening, while the West Coast, particularly Southern California, maintains low rejection rates with abundant capacity.

Understanding tender rejection trends is crucial for strategic planning for carriers. Regions with rising rejection rates may present opportunities for negotiation of higher rates or prioritization of spot market loads, while areas with declining rates require strong relationships with shippers and focus on efficiency.

While certain regions show a gradual tightening, the overall market remains balanced. Monitoring rejection rates provides early signals of market shifts, allowing carriers and owner-operators to make proactive adjustments to operations and strategy. By staying informed, they can navigate the industry’s complexities for better decision-making.



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