With just a few weeks left in peak season, markets have maintained elevated levels. The closer we get to Christmas, the more likely spot rates and rejection rates will rise.
Over the road capacity is not as tight as it was this time last year, but port congestion and bottlenecks are still contributing factors in an elevated market. Despite efforts to increase port efficiency, containers continue to line up off the coast of Southern California. On the East Coast the Port of Savannah reported a 6.7% increase in volume over November 2020. You might recall that the Port of Savannah got creative with their efficiency efforts by creating pop-up container yards at municipal airports in order to minimize congestion. As import growth continues, we’ll continue to see elevated markets and tight capacity.
After snapping back to pre-holiday levels, demand for over the road capacity is declining again. Loads per day requests are coming in between 14,800 and 15,000 loads requested per day. Rejection rates, on the other hand, are holding steady at just under 20% of all loads being rejected.
A consequence of the approaching Christmas holiday is an increase in spot rates. Currently spot rates are sitting at $3.56 a mile on average which is 15% higher than this time last year.