Atlanta freight market outperformed during July 4th
Tender rejection rates, a metric for gauging how often carriers decline contracted loads, have demonstrated significant fluctuations leading up to July 4th. According to SONAR , the national average Outbound Tender Rejection Index (OTRI) climbed above 7.8% at its peak on July 1. This uptick indicates that carriers are benefiting from tighter capacity and strained networks, enabling them to opt for higher-paying spot market opportunities over less profitable contract obligations. These conditions create a freight environment where higher rejection rates are symptomatic of a system near full capacity, affording carriers the leverage to be selective and capitalize on elevated spot rates.
(The National Truckload Index is an average of truckload spot rates inclusive of fuel, expressed in USD/mile. Chart: SONAR. To learn more about SONAR, click here)
The National Truckload Index (NTI), which tracks the average national spot rate, recently saw a surge, climbing to $2.39 per mile. These fluctuations are driven partly by seasonal factors and broader economic conditions such as inflation and rising operational costs. The spot market, unlike contract freight, allows for dynamic pricing based on real-time supply and demand imbalances, which can lead to substantial rate increases during periods of elevated demand.
(The Outbound Tender Rejection Index measures the percentage of truckloads tendered by shippers that are rejected by carriers. Chart: SONAR. To learn more about SONAR, click here)
Analyzing the market-level data reveals that Atlanta has recently outperformed other major freight hubs, demonstrating a surge in demand distinct to its region. The Outbound Tender Rejection Index (OTRI) for Atlanta peaked later than the national market, on July 5, at 11.2%, highlighting the localized nature of this demand spike. This pattern of divergence emphasizes the uneven recovery and differing dynamics across the national market. The heightened OTRI levels suggest that carriers in Atlanta are benefiting from a favorable mix of strong demand and constrained capacity, which enables them to refine their pricing and load selection strategies effectively.
In addition to Atlanta, the Dallas market has also experienced significant increases in tender rejections, peaking at 10.2% amid localized pressures tied to specific industry sectors. As regional differences in freight demand become pronounced, transportation providers are likely to find varying conditions challenging, requiring nimble strategies to maintain balance and profitability.
Looking ahead to the rest of the summer, transportation providers should brace for continued volatility in tender rejections and spot rates, as uncertain economic conditions and fluctuating consumer confidence affect freight volumes. The gradual contraction of capacity, a remnant of the post-pandemic market correction, suggests that carriers may continue to wield greater leverage in the freight market. For shippers, this environment necessitates adaptability and proactive engagement with carriers to secure favorable terms.
The driving forces of supply chain interruptions, economic headwinds, and evolving trade policies will likely persist, necessitating a strategic outlook for both carriers and brokers to navigate these complexities effectively. Freight brokers should probably bid conservatively on Q4 projects. Those who can effectively adjust their operations and pricing strategies to accommodate market demands stand to benefit as the transportation sector approaches the latter half of the year.
The post Atlanta freight market outperformed during July 4th appeared first on FreightWaves.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
7 minutes ago
- Yahoo
Covington mayor addresses loss of federal jobs, revenue to the city
Amid a budget crunch after hundreds of federal jobs were eliminated in Covington, causing a massive loss in payroll tax, we sat down with Mayor Ron Washington to see where his priorities lie for the city's spending.
Yahoo
23 minutes ago
- Yahoo
3 Stocks Seeing Big Investor Interest: NVDA, PLTR, AMZN
Several stocks – NVIDIA NVDA, Palantir PLTR, and Amazon AMZN – continue to garner significant attention among investors, with all three ranking among the top ten most-visited stocks on Their popularity is easy to understand given their big gains that have been fueled by impressive stories over recent years. Given their popularity, let's take a closer look to see what's happening with each. We've all become highly familiar with NVIDIA's red-hot multi-year-long story, with its historical growth fueled by unrelenting demand for its Data Center products amid the AI frenzy. The tech titan continued to fire on all cylinders throughout its latest release concerning its Data Center, with sales of $39.1 billion up 73% from the $22.5 billion print in the same period last year. Below is a chart illustrating NVIDIA's Data Center sales on a quarterly basis. Image Source: Zacks Investment Research The stock is still one of the strongest AI plays out there, with shares also not that expensive on a historical basis. Shares currently trade at a 32.8X forward 12-month earnings multiple, a fraction of the 106.3X five-year high and well beneath the 48.4X five-year median. The current PEG ratio works out to a fair 1.1X, again well beneath five-year highs and the five-year median. Image Source: Zacks Investment Research Palantir's latest set of quarterly results continued to impress, with sales climbing 40% year-over-year alongside an upgrade to its current-year sales outlook. Massive growth has been driven by red-hot demand that's seemingly only continuing to grow. As shown below, the company's sales growth has been outstanding over recent periods, a reflection of the red-hot demand PLTR has been enjoying. Image Source: Zacks Investment Research Importantly, customer count grew nearly 40% year-over-year and 8% sequentially. Palantir also booked a record U.S. commercial total contract value throughout the period ($810 million), which grew a staggering 180% year-over-year. Amazon's latest set of results showed solid momentum within AWS, with sales of $29.3 billion in the segment up 17% year-over-year. The growth rates here have been a major focus, which have commonly dictated post-earnings price action. AMZN signed several new AWS deals with companies throughout the period, a list that includes Adobe, Uber, Nasdaq, Ericsson, Cisco, and more. Many businesses have clamored for AWS, and market participants should expect Amazon to ink many more deals in the coming months/years. Below is a chart illustrating AMZN's sales on a quarterly basis. Image Source: Zacks Investment Research Analysts have taken a bullish stance on AMZN's current fiscal year, with the current $6.22 Zacks Consensus EPS estimate up roughly 7% over the past year. The value reflects 12.5% growth YoY, continuing the titan's growth trajectory nicely. Image Source: Zacks Investment Research Bottom Line The AI frenzy has kept stocks like NVIDIA NVDA and Palantir PLTR at the top of everybody's watch list, with Amazon AMZN also regularly seeing notable attention thanks to its sheer size and performance over the past decade. All three companies continue to operate in a favorable environment, with PLTR and NVDA regularly seeing strong demand thanks to the AI frenzy. Amazon AMZN is also a part of the story thanks to AWS, which has also regularly seen consistently strong demand over recent years. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
31 minutes ago
- Yahoo
The biggest Club World Cup question is still unanswered – does anyone care?
There is the £1bn broadcasting deal, the £97m prize for the winners, the guarantee of a minimum of over £30m in revenue for the Premier League participants. There is the possibility of the kind of windfall that could bring domestic dominance for a club from outside Europe. There is the potential reward of cracking America, as everyone looks to build their brand. In a sense, though, the Club World Cup depends upon a different kind of investment. Whatever the big financial figures, it needs buy-in: not from Fifa's partners but from the part of the footballing family who are rarely consulted, the fans. Advertisement The Club World Cup is in a battle for hearts and minds and eyeballs. It is a matter if – and it is too early to draw definitive conclusions – people buy into it; if they invest their time, their hopes and their emotions. It is perhaps easiest to assess the match-going public. The empty seats suggest Fifa misjudged the equation of supply and demand, selecting some venues that were too big and making tickets too expensive. It is partly about the American fans, partly an issue of how many clubs have brought a sizeable travelling support, and the evidence is mixed. But there is a broader test, conducted not in Atlanta or Seattle but in armchairs and sofas. How many are tuning in and how often? Because there are audiences Fifa will be chasing, hoping the interest they display in established competitions is transferred to a new – or expanded, or reinvented – one. There is the summer tournament audience, those who, if they can, would try to watch every game of a World Cup or European Championship; will they assume the same approach with a Club World Cup? The Club World Cup has suffered from plenty of empty seats at certain games (Reuters) There are questions over the interest levels in the revamped tournament (Reuters) There are those who, in the group stages and last 16, would not go that far, but would tune in for the main game of the day. Are they carving out a couple of hours every night for the Club World Cup? Advertisement Then there is the Champions League precedent. With multiple matches on at the same time, no one sees everything. But there are plenty who will watch something on every match night, and then, when the fixtures are fewer, will not miss anything at the business end of the tournament. The Club World Cup contains some of the same sides, the possibility of the same match-ups. Would those who, with no allegiance to any of the sides, automatically watch a Champions League semi-final between, say, Juventus and Bayern Munich or Real Madrid and Paris Saint-Germain, adopt the same attitude? Or, to use a parallel from 2022, will the neutrals who came to cheer on Morocco in their surprise surge to the semi-finals of the World Cup do likewise if Botafogo or Palmeiras, Flamengo or Fluminense charge into the last four now? Or will they simply sit this one out? It is a question of if the Club World Cup becomes appointment viewing; if millions, across the footballing world and separately, resolve to make a date in their diaries. And if the answers will be different, with the early indications that South America has bought into the Club World Cup more than Europe, there are a host of factors. They include time and weather: for the European audience, the late kick-offs are off-putting; for everyone, the risk of 100-degree heat can diminish the spectacle of the earlier ones. South America appears to have embraced the Club World Cup more than Europe (Getty) They can relate specifically to the United States, but there are wider issues. There is the crisis of legitimacy with the Infantino algorithm for qualification, whereby Lionel Messi's Inter Miami were crowbarred into the tournament, and, seemingly, there were attempts to find Cristiano Ronaldo a club for a month. Separately, there is the Ceferin criteria that means that, somehow, Red Bull Salzburg are in a tournament that does not feature the reigning champions of England, Italy or Spain, or two of the Champions League semi-finalists. Advertisement There is the ennui and exhaustion felt by players and public alike; many footballers' comments last year were hints they knew their workload was unsustainable, but presumably they have been silenced by executives who want the profits from the competition. Yet the sense of overkill has been apparent among many a football fan. While there were legitimate reasons to want a Club World Cup, this competition has been imposed on everyone without consultation or consideration, and that can alienate some potential viewers. Fifa's hype and hyperbole, pronouncing everything they do a glorious success, is propaganda rather than analysis – perhaps some are voting with their remote controls by turning off. There is the football itself. Some games have been like pre-season friendlies, with heavily rotated teams that bear no resemblance to the clubs' strongest sides, with managers taking the understandable view that their season has almost 12 months left to run. Which, in itself, is an admission that it ends with the Champions League final and the World Cup. Botafogo stunned Champions League winners Paris Saint-Germain (Reuters) A danger for this Club World Cup is that European fans can zone out of summer games in the United States, unless they are in an actual World Cup, anyway. There are annual matches, some in tournaments with grandiose names – the International Champions Cup or the World Football Challenge – that carry absolutely no prestige. Advertisement If the Club World Cup can redress a global imbalance – the dominance of the five major European leagues – it probably can't do so without sufficient engagement from this side of the Atlantic, and not merely because some of the most lucrative television markets are here. It is too easy, too simplistic, to dismiss all the scepticism as Anglocentric, a 21st-century version of the Little Englander syndrome that led this country to skip the first three World Cups, when the Champions League can feel the ultimate in the club game on the mainland as well. It is scarcely conclusive proof, but in five days in a continental European city last week, there seemed no evidence of bars or restaurants showing the Club World Cup, or that it was even on. It is hard to imagine a similar indifference to football in the summer of 2024 or 2026. There is ample proof that European football fans are prepared to commit to a summer tournament every two years, whether the World Cup or the European Championship, but not lesser tournaments. There are plenty of competing attractions in the summer sporting schedule – football does not always succeed when it attempts to park its tanks on their lawn. And, in this case, Fifa is also trying to overshadow the rest of the same sport, whether it's the women's European Championship, the men's Under-21 tournament or the Gold Cup. The game's governing body does not always capture the imagination with its competitions. Undoubtedly, some people cared about the Confederations Cup. Just not enough for Fifa and not enough to dominate the popular consciousness. Fifa has tried to outshine other football competitions with the Club World Cup (AP) Does the Club World Cup? It may be too soon to tell. Organic growth – as opposed to imposing a tournament and expecting it to be an instant hit – can take time. Anything new has not yet become a habit for many. Advertisement But each of us among the intended audience faces a decision: how much value we attach to the Club World Cup. It has had shock scorelines, the unexpectedly early eliminations of Atletico Madrid and Porto, and the spirited progress of the Brazilian clubs. But plotlines are more enthralling, characters more compelling and the narrative only addictive if you are sufficiently invested in it. Some, undeniably, are. Others are not. For them, the Club World Cup has been the breaking point, something they are deliberately switching off. Some will be picking and choosing their games, or vaguely paying attention. Different people will provide different answers. But for the Club World Cup to genuinely prosper, it needs a critical mass who want it, want to watch it, and want to watch almost all of it.
