Outbound tender volumes (OTVI.USA) finished this week up 4.99 percent year-over-year. South Texas led the climb with both Houston and Laredo posting strong double-digit weekly increases.
OTVI began the week with a strong start before dipping late Thursday, diminishing the weekly gains. Overall, tendered truckload volumes increased 1.45 percent this week. The OTVI index also increased the spread above its 60-day average to 3.75 percent from 2.20 percent.
South Texas saw the biggest increase in activity this week. Laredo, Texas was up 15.09 percent, while Houston followed closely behind, up 13.43 percent. On the other hand, the Midwest posted the weakest numbers with Chicago down 4.27 percent, Cleveland down 1.94 percent, and Indianapolis down 92 bps. The West Coast was mixed with Los Angeles up 3.50 percent, while Seattle declined 6.34 percent.
SONAR: OTVI.USA 2019 (Orange), OTVI.USA 2018 (Green), 60-Day Moving Average (Red)
"We've seen building and construction pick up out of the Port of Houston and northbound out of Laredo over the past two weeks," said Patty Hinojosa, Manager of the San Antonio-Mexico Flatbed Branch at J.B. Hunt. "The material is shipping not only in Texas but also throughout the country."
Other notable moves from the FreightWaves basket of important freight markets include: Memphis, up 7.57 percent; Dallas, up 2.70 percent; Atlanta, up 1.45 percent; while Ontario and Fresno, California were both down 1.60 percent, and 4.31 percent respectively.
Tender rejection rates show the first signs of life since mid-July
Truckload tender rejections (OTRI.USA) climbed the most since late June 2019. Overall rejections climbed from 3.86 to 4.25 percent this week, which is the highest level in six weeks. The index continues to post rates that are 75.35 percent below 2018 levels. Year-over-year comparables will continue to be astronomical for the remainder of the year as tender rejection rates did not fall below double digits until January 2019.
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