Tender rejection rates continued to stabilize through March, so capacity should be relatively loose into late April. Most volume-related anomalies have been originating on the West Coast in the southern California markets where carriers are currently positioned, as reflected in the very low 1.72% tender rejection rate in Los Angeles. Seasonally speaking, the spring produce rush begins at any point between April and June, but the region is currently oversupplied, so little disruption is anticipated from that perspective.
“Persistent volume softness in major hubs in March through the end of quarter makes it harder to see meaningful tightening in April,” said Zach Strickland, FreightWaves Director of Freight Market Intelligence. “We aren’t seeing data that would shift the balance of power away from shippers.”
To the extent that some major markets like Joliet, Illinois, posted a significant end-of-quarter surge, this growth does not feel like a sustainable step change in volume and should abate in April.