Latest news with #SONAR
Yahoo
3 days ago
- Business
- Yahoo
Truckload's diminishing distance
Chart of the Week: Outbound Average Length of Haul – USA SONAR: The average length of haul for truckload tenders in the U.S. fell to 533 miles last week—down approximately 70 miles, or 11%, from the same time last year, according to SONAR's tender data. While the Outbound Average Length of Haul Index (OALOHA) has dipped lower in the past, it has only reached this level during brief periods. Weak overall demand has kept the truckload market from meaningfully rebounding, but the loss of longer-haul freight is compounding that stagnation. Is there any reason to believe this trend will reverse in 2025? The primary driver behind the declining average is the shift of long-haul freight to intermodal, though demand for regional truckload moves has also softened. Freight moving less than 100 miles, however, has remained relatively resilient. Just in case Companies began increasing average lead times on orders in early 2024 as Red Sea attacks disrupted international shipping. While this didn't reach COVID-era levels of service breakdown, the disruptions were enough to cause some inconsistency. As a result, many goods arrived in the U.S. with extra buffer time for domestic movement. Inventory levels have been climbing unevenly over the past year, according to the Logistics Managers' Index (LMI). This follows a strong period of destocking in 2023, driven by collapsing goods demand and over-ordering — a pattern that remains fresh in the minds of importers and may continue to suppress aggressive restocking in the near term. Tariffs and the renewed trade war have amplified the pull-forward effect this year, reinforcing the shift to earlier, bulkier ordering cycles. Intermodal has benefited significantly from longer lead times and accelerated shipping schedules. Last week, international loaded container volumes moving by rail were up 7% year-over-year, while domestic intermodal volumes remained flat. Intermodal is inherently more cost-effective, especially for long-haul moves across the country. With more freight landing at large ports—those best equipped with major rail terminals—the shift to rail has intensified. Notably, intermodal is replacing not just any truckload freight, but some of the most impactful long-haul runs. For example, a Los Angeles to Chicago route takes a truck about four days—capacity that intermodal is increasingly absorbing. Deals getting done A breakthrough trade deal with Japan last week, which includes a 15% tariff rate, suggests the beginnings of trade de-escalation. A significant trade partner — the agreement is a positive signal that some fog is lifting from the uncertain trade environment that defined the first half of the year. At the same time, inventory carrying costs have surged. The LMI's inventory cost component rose above 80 in June — its highest level since early 2022 — making it harder for companies to justify holding excess goods. A calmer trade climate, easing geopolitical risks, and rising holding costs could push shippers back toward just-in-time inventory strategies later this year. While economists and the Fed are forecasting a sluggish finish to 2025, that may not matter much for truckload. With capacity still showing signs of tightening and long-haul demand near a floor, even modest demand shifts could cause a meaningful market reversal. If shippers pivot back to leaner inventories and faster domestic cycles, long-haul trucking could quickly return to relevance. About the Chart of the Week The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time. The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Truckload's diminishing distance appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
Five takeaways from the State of Freight for July: What earnings and the indices are saying about the market
Tariffs have been a major focus of recent installments of FreightWaves' monthly State of Freight webinar, held in conjunction with SONAR, but they took a back seat this month to various data points. What those data points are saying–whether they are about company finances or numbers on demand and capacity–was the focus of the July webinar with FreightWaves and SONAR CEO Craig Fuller and Zach Strickland, SONAR's director of freight market intelligence. Here are five takeaways from Thursday's session. One index rising, the other falling Two trends are showing up in SONAR data that at times can reflect a degree of correlation but isn't doing so now: the outbound tender rejection index (OTRI) is rising, while the outbound tender volume index (OTVI) is falling. The OTVI is reflecting what might be expected given that everybody in the sector still sees the freight market in some degree of a recession. But the OTRI is rising, a sign of tightening capacity as independent owner operators take their trucks off the road and fleets continue to disappear, not able to survive current conditions. Fuller said capacity had been on an upswing for several years, 'with a flood of new participants, companies and truck drivers.' But Strickland showed a chart showing recent increases in net revocations of motor carrier authorities granted by the Federal Motor Carrier Safety Administration (FMCSA). Fuller said he believed enforcement of the English-language only was having just a 'fractional' impact on capacity. But it could become a significant issue if there is a rebound in the housing market that leads to more trucking demand. Strickland and Fuller discussed possible other reasons for the rise in revocations, including impacts from the Drug & Alcohol Clearinghouse. 'This is an ongoing thing that we really need to pay attention to,' Strickland said. Earnings season and what it is saying The July State of Freight webinar occurred in the middle of numerous transportation companies releasing their quarterly reports. The performance of a few companies came in for discussion, including Heartland Express (NASDAQ: HTLD), which posted yet another quarterly loss Thursday. Fuller noted that Heartland's acquisitions over the years have been in the commodity truckload business, 'based on a 1990's long haul business that is no longer there.' He also spoke from personal experience as a member of the family that founded U.S. Xpress, whose profile and financial troubles were similar to what Heartland Express is going through. U.S. Xpress eventually was purchased by Knight Swift. 'The long haul business is dead for those truckload operators,' Fuller said. 'Unfortuantely, Heartland just can't seem to get a handle on that.' U.S. Xpress is now a division of Knight Swift (NYSE: KNX). In Knight Swift's second quarter earnings report, the company said U.S. Xpress had seen its operating margin improve by 300 basis points over the last year. 'Knight Swift has really proven that it can bring U.S. Xpress back to some level of sustainability,' Fuller said, noting the contrast with Heartland's struggles. Short haul ascendant The discussion about Heartland's ties to long haul truckload activity led Strickland to pull up a chart from SONAR showing its index for short haul versus long haul activity. Generally, long haul runs at a higher index, but that has flipped in recent months. The data comes from tenders. Long haul business is anything over 800 miles, Strickland said. Fuller said he believes the shift is part of a longer term trend. But he also said he believes the sort of reindustrialization of the U.S. economy being pursued by the Trump administration could reverse that change. But there's a risk for trucking, he said. As the long haul sector of the freight market becomes more dependent on import activity, 'then a lot of that is going to be containerized and going to go on the railroads.' Across the country on one company's set of tracks With negotiations ongoing between Norfolk Southern (NYSE: NSC) and Union Pacific (NYSE: UNP) that would create the country's first true transcontinental railroad, the impact on the transportation sector became a topic of discussion. Describing railroads as a 'dream business,' Fuller noted that Union Pacific profitability has exceeded that of Microsoft at times. 'The consolidation ends up making them that much more profitable,' he said. As to the question of who else might benefit from a consolidation besides the railroads, Fuller said 'I would argue that rarely does a real merger benefit the shippers.' However, a consolidation between the two railroads, UP in the west and NSC in the east, would likely aid large shippers like Amazon. . Owner operators and brokers would likely lose, he said, but he added that large intermodal carriers such as J.B. Hunt (NASDAQ: JBHT) or HubGroup (NASDAQ: HUBG) would benefit. 'I think the traditional railroad shippers, the big commodity players like coal or grains, they probably lose because the service quality will likely deteriorate for them. But it should improve for intermodal.' A revival of freight tech Fuller said that 'one of the most exciting things happening at freight now' is a revived interest in freight technology. Prior to the pandemic, Fuller said there were a slew of technology vendors offering new products, backed by venture capital. In his discussion, he only mentioned one specific company that has been active: Triumph Financial (NASDAQ: TFIN), which bought Greenscreens AI earlier this year and is looking to expand its Intelligence division. But beyond that, he said, 'there's just a lot of deal flow happening.' He described much of the activity as being around 'next generation' technology, like freight tech powered by AI. More articles by John Kingston Yet another broker liability case, this time in the Fifth Circuit, adds to the growing mix Much happened at Triumph Financial during the quarter; USPS dispute settled Supply chain software provider Manhattan Associates soars after strong revenue growth The post Five takeaways from the State of Freight for July: What earnings and the indices are saying about the market appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-07-2025
- Business
- Yahoo
Regional disparity grows as truckload capacity tightens
Chart of the Week: Regional Rejection Indexes – Southeast, Midwest, Northeast, West Coast, Southwest SONAR: Truckload tender rejection rates have diverged significantly over the past year, reflecting growing regional imbalances in the U.S. trucking market. In the Southeast, rejection rates have averaged close to 10% over the past two months, while West Coast rates have remained around 3.5%. This widening gap signals increasing network and pricing inefficiencies and suggests that the truckload market is less stable than it appears on the surface. At this time last year, the gap between the two regions was much narrower: the Southeast averaged around 6%, while the West Coast sat only slightly lower at 5.3%. They're not alone—other regions have also drifted apart. During the winter, the Midwest saw the most disruption, with rejection rates exceeding 12% for the first time in two years, while the West Coast remained under 8%. For context, rejection rates above 10% are typically problematic for shippers, often triggering rapid rate inflation. These spikes are usually associated with holiday periods like Christmas and the Fourth of July. The increasing dispersion in regional rejection rates points to a less balanced freight environment. Carrier networks constantly struggle to keep trucks moving toward areas where equipment is needed. When demand shifts—as it has over the past year—networks are slow to recalibrate. Not so oversupplied Following the pandemic, truckload capacity was so abundant that regional imbalances were largely absorbed. Trucks were readily available, often waiting on the sidelines. That's no longer the case. Since late 2022, the market has been shedding capacity. According to FMCSA data, more than 48,000 registered operators have exited the market. Net revocations have accelerated since last October, now averaging nearly 200 more per week year-over-year. Still, the increase in total rejection rates has remained modest—hovering around 6% in recent months—insufficient to spark a significant capacity crunch or a market 'flip.' Rates are also driving regional inequity One contributor to the growing disparity in rejection rates is the diverging trend in contract rates, particularly out of eastern markets. According to SONAR's invoice data, the average contract rate per mile from Los Angeles to Chicago has risen about 3% over the past two years. In contrast, the rate from Atlanta to Chicago has declined nearly 7%. While these are just two lanes among many, they illustrate a broader trend: outbound Southern California rates have shown more upward pressure than those in the East. Length of haul also plays a role. Freight originating in Atlanta averages about 500 miles, while Los Angeles loads average more than 800 miles. This difference incentivizes carriers to prioritize longer West Coast hauls. Rejection rates out of Atlanta — the Southeast's largest market — have spiked in recent months. Although this hasn't yet driven up contract rates, it has had a strong effect on the spot market. Spot rates in the Atlanta-to-Chicago lane are up 41% since mid-April. If sustained, this could eventually lead to higher contract rates. In the meantime, it highlights how fragile the spot market environment is. The Bottom Line The freight market remains relatively soft, with little upward movement in long-term contract rates. But under the surface, conditions are shifting. The fact that spot rates have surged more than 40% in a well-traveled lane — even in a down market — demonstrates just how vulnerable the truckload environment has become. About the Chart of the Week The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time. The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Regional disparity grows as truckload capacity tightens appeared first on FreightWaves.
Yahoo
17-07-2025
- Business
- Yahoo
SONAR Unveils Redesigned Supply Chain Intelligence Platform with New Risk and Efficiency Quadrant
A completely redesigned experience for SONAR's Supply Chain Intelligence (SCI) has been launched allowing SCI to deliver faster insights, deeper market intelligence, and more actionable guidance for shippers managing their RFPs. The updated platform merges the previous Opportunity View and List View into a single, powerful page called Lane View. This consolidation allows users to drill into lane-level insights efficiently, see market performance across both Intermodal and Truckload, and access pricing benchmarks, guidance, and scoring within one streamlined interface. Embedded in the new Lane View is a quadrant-based guidance system for risk and efficiency. This feature helps prioritize RFP strategy by categorizing lanes into four zones: High Risk Zone: Lanes that are difficult to cover and where you are over market. Carrier Dependent Zone: Lanes that are difficult to cover and where you are under market. Savings Opportunity: Lanes that are easy to cover where you are over market. Efficiency Zone: Top-performing lanes where you are under market and lanes are easy to cover. These zones highlight where to focus time, renegotiate, or reallocate volume. Additionally, the update introduces enhanced Summary and Network Views for sharper high-level visibility. Users can better understand where they are overpaying or underpaying across their network with clearer visuals and aggregated scoring. New market-level maps and improved filters help spot areas of concern or opportunity and enable faster diagnostics. The new SCI helps unlock greater RFP savings and lane performance with smarter, visual prioritization, allowing users to reduce risk, boost service, and easily spot network inefficiencies. To explore the redesigned experience, log in to SONAR and navigate to the SCI module. For a personalized walkthrough, contact your account manager or cs@ To learn more about SONAR, visit and request a demo. The post SONAR Unveils Redesigned Supply Chain Intelligence Platform with New Risk and Efficiency Quadrant appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Automotive
- Yahoo
SONAR adds intermodal savings rates
Building upon SONAR intermodal and dry van contract rate data already available in the platform, as of today, intermodal savings rates are now included in SONAR, as a national average, for 63 individual lanes, and two indices. The LA to Dallas lane is competitive between truckload and intermodal with a 9% average intermodal savings rate. That's below the national average of 23%. (Chart: SONAR) The intermodal savings rate is the percent savings that a shipper can expect to realize by using domestic rail intermodal rather than truckload. It is the calculated percent difference between rates that include fuel surcharges for both modes. The inclusivity of fuel surcharges is important because the greater fuel efficiency of intermodal is a significant component of the overall savings versus truckload. The new dataset primarily targets shippers that move freight in dense corridors and/or longer haul lanes where rail intermodal could potentially be a viable option over truckload. The 63 lanes chosen for the index are those with sufficient intermodal density to make intermodal a viable option for most shippers that can tolerate 'truckload plus a day' service levels. The individual lanes were also selected on the basis of those where sufficient intermodal rate data is available. The Transcontinental Index displays the average intermodal savings of five dense intermodal lanes outbound from Los Angeles. The objective is to give importers a quick read on changes in rates to move goods to consumption centers after they are transloaded from international containers into 53' domestic containers. Meanwhile, the Local East Index displays the average savings of nine lanes in the eastern one-third of the US. That grouping of lanes is intended to represent those that are highly competitive with dry van, and therefore, more influenced by truckload market conditions. Truckload contracts are often repriced more frequently than intermodal contracts, so a tightening in market conditions could cause the savings rate to rise, at least temporarily, all else being equal. For additional detail, see the Intermodal Savings Index Knowledge Center Article. The post SONAR adds intermodal savings rates appeared first on FreightWaves. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
