Van Freight Tightens Up as Capacity Stays Fragile
Tender rejections hit 14%, but demand isn’t the real story. This SONAR update breaks down why van rejection rates are staying elevated, why capacity still looks fragile, and what that means for spot rates heading into quarter-end and October. We dig into national rejection trends, van vs. reefer vs. flatbed, tender volume seasonality, Midwest market […] The post Van Freight Tightens Up as…
Van freight capacity remains fragile as tender rejection rates remain elevated, according to a recent FreightWaves Sonar Update. Zach Strickland highlighted that van rejection rates are staying high, despite representing the largest share of freight volume. The National Sonar Tender Rejection Index climbed to 14%, holding near a secondary peak similar to levels seen around Labor Day.
Van freight, accounting for 60% to 70% of all freight tendered in the U.S., drives the bulk of the pressure, even though total tender volumes are below April levels. The Midwest corridor, including markets like Columbus, Joliet, Allentown, and Elizabeth, is the primary geographic driver of rejection-rate stickiness. Refrigerted and flatbed rejections are also elevated, but at lower rates.
Spot rates for van freight are predominantly moving upwards, except for isolated softening in Atlanta and Greenville, South Carolina. Diesel fuel costs are contributing to the upward move, but the fragile capacity backdrop is providing the opening for rate increases.
Written by urgent.news from FreightWaves's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
