The Outbound Tender Rejection Index (OTRI) pushed above 16% for the second time in 2020 last week, after being as low as 2.5% in early May, which was the lowest value seen since the index was created in March 2018. To put it in perspective, the highest value recorded for the national index that measures the rate at which carriers reject their electronic load requests from shippers was 26.8% in March 2018 when carriers were taking advantage of an overheated spot market. What are the odds we reach similar levels in 2020?
When the initial shutdown of the nation’s economy began in March, daily freight volumes surged to all-time highs, with the Outbound Tender Volume Index (OTVI) topping 13,000 for the first time in its two-year history, and tender rejection rates were higher than in all of 2019, exceeding 19%. No one anticipated volumes and subsequently rejection rates would return to something resembling the panic-induced shipping spree in March.