Week chart: Exit Index Rejection of Contest, Volume Index of the Exit Competition – Laredo SONAR:: Otri.lrd,, Otvi.lrd
The truck capacity dispatching requirements are rejected at the highest prices from the pandemic era in Laredo, Texas – the largest US border crossing market.
The output index of rejection (Otri) Measure the percentage of truck capacity requirements that the carriers decline. Because the rejection of load is generally undesirable for carriers, the growing rejection rates indicate the tightening market with a limited available capacity.
The rejection rates for loads from the laredo are average about 3.8% from October to mid -December, but increased over 6% just before Christmas and remained elevated unexpectedly.
Since October, demand has been around about 10% more than a year, but the rejection rate has only increased around the holidays. This suggests that only demand cannot explain the market for the market.
One potential initiator is an uncertainty over US trade policy. Over the past month, President Donald Trump threatened, implemented and then stopped Tariff on Mexico, the largest American trade partner in value. This insecurity was foreseen before the election, which can explain the permanent growth of cross -border demand for freight flow while the shippers are in a hurry to move the goods before increasing potential costs. However, growing rejection rates suggest additional factors.
From an exit perspective of a cargo, laredo is a relatively small market. In 48th place of 135 US cargo markets, with only 0.7% of the total volume of output freight traffic. His location-day ride from Dallas and just over half a day from Houston-Cinema relatively removed.
Most importantly, Larek deals with far more freight cargo, leaving the region, not there, a trend that intensified in the last year. When the freight markets become strongly focused on the outgoing, the support network can become tense, leading to the inefficiency of the supply chain.
In the main outgoing markets such as Los Angeles, prices are the additional cost of repositioning of empty trucks (known as “dead head”). Consignants pay at the direct cost of transportation, covering the costs of the carrier when moving the equipment.
However, the Ladry serving cost increased even when the widen rate of the cargo decreases. The carriers struggled to transmit these repositioning costs, reducing their incentive to give a bound load a priority.
Contract rates in key strips, such as lared in the Dallas, increased by 13% compared to the year, according to Sonar accounts, while the video in this strip increased by 8%. However, these increases did not retain enough carriers on the market to prevent the growing rejection rates.
