OTR Capacity Slightly Tightens

OTRI.USA 2023 v 2019 (by FreightWaves)

In recent developments, the national Outbound Tender Reject Index (OTRI) has exceeded 4% this month, marking the first time since early January that it has reached this level. This increase comes after a recovery period from the holiday season. While a 4% OTRI still indicates a relatively loose market, the timing and trend suggest that the softest market conditions may be behind us.

It is worth noting that this recent uptick is also noteworthy as it surpasses the values recorded in 2019, a year characterized by a historically loose market with numerous carrier exits. The rejection rates observed in 2019 provide some historical context for the current rise, but it is occurring approximately two to three weeks earlier than anticipated.

The national OTRI serves as a metric to gauge the rate at which carriers reject loads from shippers at a previously agreed upon or contracted rate. Typically, OTRI values below 4.5% are associated with truckload markets that have ample capacity, leading to deflationary effects on contract rates.

Written by Ken Miller, President of StateWay Logistics

Data sourced from FreightWaves