Trucking Market Shifts: Holiday Season Brings Changes

The holiday season saw a rise in truckload carriers turning down shippers' requests. This is shown by the Outbound Tender Reject Index (OTRI) hitting over 10% for the first time since April 2022. Spot rates also jumped nearly 10% compared to 2023. While this is a sign that trucking capacity is tightening, it could have been much worse. The trucking market is known for its ups and downs, but the pandemic made seasonal changes less predictable. Now, Christmas stands out as the peak season. Last year's OTRI was only 5. 6%, meaning one in 18 loads couldn't find a truck. During the pandemic, it was one in five loads. Shippers are feeling the pinch but have strategies to cope. They're giving carriers more notice before pickup, using intermodal transport more, and managing inventory better. These changes help, but they also reduce demand, leading to fewer carriers. If shippers hadn't adapted, the holiday season could have been chaotic. With uncertainty continuing, supply chain managers will face challenges in 2025.