In his latest analysis of the transportation market, Greg Stanton examines freight rates and their impacts on market conditions. This analysis looks at rate changes, bid volumes, and rejection rates in five key markets including Cincinnati, Detroit, Joliet, Miami, and Houston. The results indicate that rates alone may be misleading.
Freight Rates and Market Status
According to the report on September 11, freight rates remain high, while bid volumes and rejection rates are declining. This national picture conceals wide fluctuations at the urban level, with rates strengthening in some areas and declining in others. The freight rejection index (STRI) has reached 13.22% nationally, a 9% decrease from last week and 3.2% lower than last month.
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Regional Differences in Rates
Among the five markets examined, Cincinnati and Detroit have experienced the highest rate increases. Cincinnati, with a 20% increase in rates, a 15% increase in rejection rates, and a 7% growth in bid volumes, is recognized as a strong market. In contrast, Detroit tells a more complex story with a 13% increase in rates, a 14% decrease in rejection rates, and a slight 2% increase in volume.
On the other hand, Joliet stands out as a prime example of declining demand, with a 15% drop in rates and a 12% decrease in rejection rates. Miami and Houston also show clear weakness in the market, with rates in Miami down 24% and rates in Houston down 15.4%. This situation indicates that various factors, including demand and capacity, can influence rates.
Ultimately, this analysis emphasizes the importance of paying attention to local data compared to national averages. For brokers and carriers, accurate information regarding the balance of inbound and outbound volumes can explain rate changes that cannot be predicted solely based on national figures.
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