Low Tender Rejections Rates Favor Shippers

Less-than-Truckload Market:

National Motor Freight Traffic Association (NMFTA) has released findings on Monday from their survey to LTL experts performed for the future of National Motor Freight Classification (NMFC). The findings were in support of moving towards a less complex, full density-based classification system for commodities with exceptions “where negative handing, stowing, and/or liability considerations are evident”. Based on these findings, the Freight Classification Development Council has implemented new changes to NMFC codes found in the Public Docket 2022-3. The council has also officially launched the “Classification Reimagination Project”.

Less-Than-Truckload rates have continued with increases while spot truckload rates have been decreasing. There a couple reasons that the LTL markets take longer than truckload markets for price correction. A consolidated industry with high barriers to entry, less-sensitivity to fewer shipments (trucks will still move at lower revenues if there are fewer shipments), and other factors help LTL rates to move slower. You can read more about this with graphs in this FreightWave article.

Truckload Market:

Tender Rejections have been at the lowest since May 2020, according to Freightwaves Sonar. During May 2020, the country and economy was coming back from the nation-wide lockdowns that shut down manufacturing. This helps create a favorable market for shippers as the low number shows carriers are not turning down or rejecting loads.

Source: Truckload Market Loosens Again as Tender Rejections Touch New Lows

According to DAT trends, load postings continue trend lower while truck postings continue upward. Week-over-week, all equipment saw load posts drop 10 %. Fuel continues to be higher – still up 47.5% compared to last year and up 8% week-over-week.