Redwood Report: Market Intel for Might 18, 2023 – Redwood Logistics : Redwood Logistics
We’re lastly wrapping up CVSA Worldwide Roadcheck week, and as common capability has been sidelined, with owner-operators parking their vans and trying to keep away from the chance of inspection. Those that have risked DOT inspection remained opportunistic and seemed to maximise the worth of their tools over this 72-hour timespan.
With these impacts, plus the Memorial Day weekend on the horizon, get the total scoop on how one can navigate the freight market with this week’s Redwood Report.
Watch This Week’s Redwood Rundown
Roadcheck! Sure, that’s the focus this week, however EVP of Procurement Christopher Thornycroft additionally discusses the bigger long-haul capability image and the potential black swan occasion that would actually throw the marketplace for a loop:
A Nearer Have a look at Worldwide Roadcheck 2023 Impacts
We’re seeing restricted capability, notably out of the areas with rising volumes such because the Southeast (particularly Atlanta) and Southwest (particularly Los Angeles and the capability it pulls from the Phoenix market) together with Texas (particularly Houston) and Chicago.
With a traditionally excessive unfold between contract and spot charges, brokerages are emphasizing service of contract freight with the restricted capability at hand. A pure byproduct of the excessive contract-to-spot unfold continues to be the restricted spot setting, although a right away return of spot capability is anticipated with the top of Roadcheck week, ending tonight.
By way of particular impacts, the Outbound Tender Rejection Index (OTRI) has risen .17% from Wednesday to 2.79%. Whereas that’s nonetheless traditionally low, that .17% motion is definitely the biggest single-day OTRI motion upwards in 2023. We’ll take a look at the total OTRI impression subsequent week.
Chart of the Week
The present 1.39 to 1 ratio Whole Enterprise Stock to Gross sales Ratio from the Federal Reserve Financial institution of St. Louis (FRED) matches December 2022 for the best stock degree to gross sales ratio since June 2020.
U.S. Census Bureau, Whole Enterprise: Inventories to Gross sales Ratio [ISRATIO], retrieved from FRED, Federal Reserve Financial institution of St. Louis; https://fred.stlouisfed.org/collection/ISRATIO, Might 18, 2023.
Searching for Even Deeper Market Insights?
Wish to know extra about how the freight market rebounds from Roadcheck week and the way try to be excited about capability heading into Memorial Day weekend?
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