Seasonality Pushing Rejections and Rates Higher Ahead of the Fourth
Carrier negotiating power strengthened this week according to the DHL Supply Chain Pricing Power Index, which rose from 70 last week to 75. The index measures carrier leverage in rate negotiations using FreightWaves SONAR data.
The three-month outlook for the index stands at 70, indicating that current conditions may moderate after the holiday period.
Seasonal demand patterns typically influence rejection rates and pricing in the weeks leading into major holidays. The approach of the Fourth of July appears to be contributing to tighter capacity as shippers move freight ahead of the long weekend.
Higher rejection rates mean carriers are declining more loads at previously offered prices. This dynamic often leads to increased spot rates as shippers compete for available trucks during periods of elevated demand.
The Pricing Power Index provides carriers with a benchmark for understanding how market conditions affect their position in negotiations. A reading above 50 generally suggests carriers hold more leverage than shippers in rate discussions.
Trucking operations planning loads around the holiday period may see firmer pricing on both contract and spot freight as volumes build in the coming days. The index reading of 75 reflects these short-term pressures rather than a sustained shift in market fundamentals.