• Spot rates in this lane have been flat to slightly down over the past month with a relatively narrow range of reported rates averaging just above $2,600 all-in. 
• Houston’s outbound rejection rate has hit its highest point in nearly a month with a value of 8.3%.
• Jacksonville’s outbound tender rejection rate continues to climb higher, pushing over 13% after being at 9% two weeks ago. 

• What does this mean for you?
  
  Brokers: Keep an eye on this lane for increasing volatility as implied by the jump in the tender rejection rate. Jacksonville has become a relatively strong destination market, which should keep carriers’ interest steady in this lane. Use this to keep rates under control.   

  Carriers: Prioritize coverage of this lane out of Houston as Jacksonville capacity has been tightening for two weeks. With the holiday approaching, things are not expected to improve. 

  Shippers: Watch for service deterioration out of Houston this week. Expect to pay around $2,600 or higher all-in on the spot market if your contracted carriers are not available. 

Lane to watch: Des Moines, Iowa, to Cape Girardeau, Missouri

• The Des Moines outbound tender rejection rate is more than double the national average at 21.42%, indicating there are significant capacity constraints and inflated spot rates. 
• Spot rates are up overall for the past 30 days but just under 30-day records at $3.38 per mile.
• Cape Girardeau continues to be the market with volatility to rival that of a yo-yo. Swings of 10 basis points within a week have been all too common throughout May.

• What does this mean for you?

  Brokers: The volatility of Cape Girardeau makes for a risky challenge. Priority coverage on this lane is paramount as rates could spike, capacity could tighten further and coverage could become even more unreliable than it already is. An all-in rate of $1,527 should do well to secure a shipment with two and a half to three days of lead time. 

  Carriers: Capacity in Des Moines is loosening, but outbound tender rejection volumes are still more than double the national average. Rates are inflated for this market and will continue to be throughout the peak of agricultural shipping season. Hold firm on rates, and put upward pressure on the spot market. 

  Shippers: Outbound tender lead times to ship anything from Des Moines should be set at a minimum of three days. Capacity is tight out of Des Moines, making it difficult to cover loads at times. Knowing rates will be higher than average on this lane will affect the transportation spend, but utilizing other, more cost-effective lanes can help balance that out.