The two tightest regions tell two very different stories about the freight market

The freight market is divided into two distinct regions, each with its own unique challenges and trends. The Northwest region, previously one of the loosest in the country, is now experiencing a sudden surge in reefer tender rejections, peaking at 20.27% in early October. This sudden increase is largely due to the fall produce season, particularly the harvest of apples, potatoes, and other reefers in Washington, Oregon, and Idaho.

However, the tightness in the Northwest is partly a result of regional demand volatility and a shortage of national capacity to handle the increased harvest freight.

On the other hand, the Midwest region has been consistently tight, with rejection rates hovering around 15% since February. This tightness has been sustained despite a 10% year-over-year increase in tender volume. The Midwest is tight across both reefer and van equipment types, with van rejections near 15% and reefer rejections near 29%. Unlike the Northwest, this tightness shows no signs of easing, making the Midwest a significant long-term signal in the national freight market.

In contrast, regions like the Southeast and Southwest have turned to intermodal solutions to manage their tight freight markets. Intermodal volume through Atlanta and Dallas hubs has increased by 15% to 20% year-over-year, a trend that began in the summer when rejections in those regions peaked. As the national market has eased, these regions have adopted more efficient and flexible freight solutions.