Truckload Performance in January 2021
January 2021 - Transportation Market Report
Volumes came rifling and right back, and they remain consistent throughout. The rejection index in the dry van has softened a bit. We are detecting a loosening in the market, but that is a relative term. Volumes are still high and rejection rates are still over 20%. Therefore, one in five contracted and negotiated freight tenders being rejected by your primary carriers. The rejection is particularly challenging when we look at truckload in the reefer space. The rejection index in the month of January for the reefer truckload rate is over 40%. Almost half the freight out there nationally is being rejected and there are even pockets in the US where rejection indexes are over 60%.
We reasonably expect this to continue through Q1 and Q2 due to a couple of the common events that are coming up. Right around the corner is Chinese New Year and after you start moving into produce season.
Produce season is always a huge capacity crunch in the reefer space. The direction we give for anybody that is playing in the reefer truckload space is to do what you can internally increase your lead times out to your carriers. Give the carrier the opportunity to secure the capacity. The longer the lead time the better opportunity you will have the success.
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