Overview: Capacity is likely to tighten and put significant upward pressure on spot rates.
- Pittsburgh outbound tender volumes are up 10% w/w, signaling that demand for capacity is increasing.
- The Headhaul Index in Pittsburgh is up 24% w/w, signaling that capacity is likely to tighten.
- Pittsburgh outbound tender rejections are already up 494 bps w/w but are likely to move higher due to tightening conditions.
What does this mean for you?
Brokers: You are likely to see capacity tighten in the days ahead. Already, outbound tender rejections are up 494 bps w/w. The increase of 24% w/w in the Headhaul Index has been driven primarily by a decrease in inbound volumes, which is signaling that this growing imbalance in volumes could cause a significant tightening of capacity. With these conditions, expect upward pressure on spot rates.
Carriers: This Pittsburgh market’s pricing power is shifting back into your favor as outbound tender rejections indicate significant tightening in capacity in the days ahead. With shippers and brokers likely already feeling the pressure, try to stay firm on your rates and capitalize on your spot market opportunities as outbound volumes rise.
Shippers: Your shipper cohorts in Pittsburgh are averaging 2.8 days in tender lead times, but if the Headhaul Index continues to increase, you will need to extend your tender lead times to between 3.5 and 4 days to ensure that you are able to source capacity effectively during these tightening conditions.