Each week, hundreds of masses transfer throughout the nation earlier than a single charge hits the load board. That’s as a result of most freight—particularly high-volume freight—begins with a contract. Shippers ship out tenders to their core carriers, often the identical ones each week. However when these carriers say no? That’s when issues begin to shift—and it’s additionally when the cash begins shifting.
The issue is, most small carriers and owner-operators aren’t watching what’s occurring upstream. They’re watching load boards. They’re taking a look at what they obtained paid final week. And by the point they notice one thing’s modified, the good brokers have already made their transfer.
This text breaks down what a young rejection is, the way it’s tracked, and the way it can predict your subsequent charges—if you recognize the place to look.
Let’s break it down easy. A young is a cargo provide from a shipper to a contract service. Consider it like this: a shipper says, “We’ve obtained a load leaving Atlanta going to Columbus. Can you progress it for $1,950 like we agreed final month?”
If the service says sure, that’s accepted. If they are saying no—possibly they don’t have a truck, or the spot market’s paying higher—that’s a young rejection.
When sufficient of these get rejected in a given market, that freight has to go some place else. And the place does it go?
The spot market.
That is the place it will get important for small carriers. You may not have entry to the preliminary tender, however as soon as it will get rejected, you’re in play. When you’re watching rejection knowledge, you may place your truck earlier than the freight hits the board—and you’ll negotiate stronger as a result of you recognize the market’s getting tighter.
The freight market doesn’t run on guesswork. Massive shippers and brokers use knowledge instruments like SONAR from FreightWaves to trace tendencies. Some of the necessary metrics in SONAR is the Outbound Tender Rejection Index (OTRI).
This quantity exhibits what share of masses are being rejected by contract carriers in a particular market.
If the OTRI in Chicago jumps from 5% to 10%, which means twice as many masses are being turned down. That’s a sign that capability is tightening (obtainable vehicles are declining)—and spot charges are more likely to rise in that market within the subsequent few days.
Carriers who’re watching this in actual time can reposition their truck or push tougher on charge in markets the place tender rejections are rising.
Right here’s the way to learn the sign:
-
OTRI below 5% – Contract freight is being coated simply. No main stress on spot charges. Count on delicate charges on load boards.
-
OTRI between 5–10% – Capability is getting tighter. Spot market might begin to take in overflow freight. Charges more likely to rise barely.
-
OTRI over 10% – Shippers are struggling to cowl freight. Brokers are calling extra carriers. Spot market is heating up quick.
Each week, hundreds of masses transfer throughout the nation earlier than a single charge hits the load board. That’s as a result of most freight—particularly high-volume freight—begins with a contract. Shippers ship out tenders to their core carriers, often the identical ones each week. However when these carriers say no? That’s when issues begin to shift—and it’s additionally when the cash begins shifting.
The issue is, most small carriers and owner-operators aren’t watching what’s occurring upstream. They’re watching load boards. They’re taking a look at what they obtained paid final week. And by the point they notice one thing’s modified, the good brokers have already made their transfer.
This text breaks down what a young rejection is, the way it’s tracked, and the way it can predict your subsequent charges—if you recognize the place to look.
Let’s break it down easy. A young is a cargo provide from a shipper to a contract service. Consider it like this: a shipper says, “We’ve obtained a load leaving Atlanta going to Columbus. Can you progress it for $1,950 like we agreed final month?”
If the service says sure, that’s accepted. If they are saying no—possibly they don’t have a truck, or the spot market’s paying higher—that’s a young rejection.
When sufficient of these get rejected in a given market, that freight has to go some place else. And the place does it go?
The spot market.
That is the place it will get important for small carriers. You may not have entry to the preliminary tender, however as soon as it will get rejected, you’re in play. When you’re watching rejection knowledge, you may place your truck earlier than the freight hits the board—and you’ll negotiate stronger as a result of you recognize the market’s getting tighter.
The freight market doesn’t run on guesswork. Massive shippers and brokers use knowledge instruments like SONAR from FreightWaves to trace tendencies. Some of the necessary metrics in SONAR is the Outbound Tender Rejection Index (OTRI).
This quantity exhibits what share of masses are being rejected by contract carriers in a particular market.
If the OTRI in Chicago jumps from 5% to 10%, which means twice as many masses are being turned down. That’s a sign that capability is tightening (obtainable vehicles are declining)—and spot charges are more likely to rise in that market within the subsequent few days.
Carriers who’re watching this in actual time can reposition their truck or push tougher on charge in markets the place tender rejections are rising.
Right here’s the way to learn the sign:
-
OTRI below 5% – Contract freight is being coated simply. No main stress on spot charges. Count on delicate charges on load boards.
-
OTRI between 5–10% – Capability is getting tighter. Spot market might begin to take in overflow freight. Charges more likely to rise barely.
-
OTRI over 10% – Shippers are struggling to cowl freight. Brokers are calling extra carriers. Spot market is heating up quick.
