Carriers have a West Coast bias

Week scheme: The tender issued by the index – southeast, the western coast of the sonar: otri.rse, otri.urwt

Tender rejection rates (OTRI) for truck cargo shipments that originated in the southeast (URSE) exceeded 10 % last week – on the occasion of the first time in nearly three years, reaching this level. On the other hand, the rejection rates for the departure shipping on the West Coast (URWT) are still much lower than the national average, which is the lowest among the seven main regions of the United States. This contrast is noticeable, especially given the current focus on imports and southern California ports that deal with the movement of containers in the United States. So, what can we learn from these different trends?

Let’s start with the request, the first most logical factor to examine it. Tender sizes from the southeast decreased by 6 % on an annual basis, while the sizes of the West Coast decreased by 14 % annually.

While the demand has been better in the east, it has not increased useful. This shortage of growth indicates that the demand alone is unlikely that the root cause of the rejection rate varies – at least not direct.

As we discussed previously, a lot of demand for long shipping from the west to the railway has turned, with a large share of the truck loading sector. The truck brought the goods to the United States before the fulfillment needs, allowing more flexibility in how to transfer shipping throughout the country.

Los Angeles from Los Angeles is still up to a year, although they have declined in recent weeks along with low import levels. Meanwhile, Los Angeles Los Angeles is less than 26 % annually.

Intermodal is a slower but more expensive alternative to truck transport-both attractive options in an environment of the ability and cost of a shrinkage warehouse. In many cases, intermodal is a form of storage for mobile devices.

This shift helps explain part of the contrast in the rate of rejection of the truck’s truck load. Without insufficient continents shipments, transport companies that work outside the West may find that they are stuck without balanced return loads.

Despite the low demand, some transport companies may be attracted towards the West Coast due to the operational advantages. The average length of distances from Los Angeles remains more than 800 miles – a decrease from 900 miles last year – which may lead to better use of trucks and height of revenues for each load.

The rates are also convincing. According to Sonar’s Trac and Beitice data, instant prices in many major California corridors are or exceed $ 3 per mile. The current averages include $ 3.29 for Denver, $ 2.97 to Solt Lake City and $ 2.92 for Phenix.