In 2021, the number of electronic requests for truckload capacity that shippers send to carriers, has gotten stronger since 2020 when it was underachieving. According to Freightwaves, the Outbound Tender Volume Index that measures those electronic requests, were on average up 10% than the previous year since December 22nd. This should provide optimism for shippers that there is plenty of freight to move in the New Year.
What does Outbound Tender Volume Index (OTVI) mean?
Outbound Tender Volume Index is an index that is used to measure changes in truckload demand and strong directional shifts that have a connection to upward or downward movement on trucking costs, according to Freightwaves.
Tender Volumes in 2020 vs. 2021
In December 2020, tender volumes plummeted and continued to do so until mid-February the following year. Things were looking like the truckload demand would eventually go back to what it was like before the pandemic, however with unplanned customer resilience and a large winter storm in the south, the tender volumes went up 23% in just eight days, because of the domino effect of production and transportation disruptions that occurred, according to Freightwaves.
This past year in 2021, we have seen the decline go on a slower pace. According to Freightwaves, the tender volumes in 2020 fell 8% from December 4th to the 22nd, in contrast this year, they only dropped 4.3% over the same period. Things are looking optimistic as there have been some improvements in labor, but trucking employment levels are still not where they need to be and demand is still rapidly going up. If you would like to learn more, contact a team member today!
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