Brokers and Carriers alike know that getting contract freight with shippers is where they can really create revenue and grow their business, but spot market freight is where the margins are made.
But where is that spot freight? Using SONAR, users can pinpoint areas in the country where there may be a supply/demand problem and be proactive with this information.
SONAR has thousands of data sets and granularity options available within the API and UI platform, but when it comes to supply and demand, users can get a good understanding of the market with just a few data sets. SONAR’s proprietary data sets — Outbound Tender Volume Index (OTVI) and Outbound Tender Reject Index (OTRI) — together paint a clear picture of the supply and demand in each market.
Overlaying OTVI and OTRI on a chart will show the level of freight demand (OTVI) and how capacity in the market is reacting to that demand (OTRI). OTVI is an indexed data point that shows how much freight was tendered out on a daily basis, within a day of tender. Having this information at your fingertips provides an edge over any other transportation provider in the industry. On top of the volume being tendered, SONAR tracks whether those load tenders were accepted or rejected. If the tender is rejected, it will go into the OTRI, which represents a pure percentage of freight that is being rejected.
OTVI.USA compared to OTRI.USA
OTRI is a great leading indicator for when a market might be starting to heat up with spot freight. When you think about the way that freight is tendered from a shipper to a transportation provider, there will normally be a couple of days of lead time. So when looking at a market and seeing their OTRI percentage has increased day over day and continues to go up, users can expect to see more freight available on the spot market within the next couple of days. The shippers will continue to go down their list of contracted providers, and if no one accepts that load, it will most likely end up on the spot board.
Map Layer with Outbound Tender Reject Index
Transportation providers don’t normally have a choice of where their freight is coming from, but with SONAR, they can easily and quickly look up information about a market that may not be familiar to them. Being able to provide real-time information to both their operations teams and customers can help build trust and credibility.
In conclusion, leveraging SONAR to find spot freight can significantly enhance operations and margins for transportation businesses. Utilizing powerful data sets like SONAR’s OTVI and OTRI helps users gain a clear understanding of market supply and demand dynamics. This insight allows them to anticipate market changes and proactively secure spot freight opportunities for a competitive edge. With SONAR, users can make informed decisions, improve operational efficiency and build stronger relationships with their customers by providing real-time market information. Start using SONAR today to navigate the spot market more effectively and drive your business forward.
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