What is it?
An index that measures accepted load volumes moving under contracted agreements. It is an index of accepted load tenders. It is similar to the Outbound Tender Volume Index (OTVI), but removes all the rejected tenders.
Who is interested?
Anyone that is interested in freight demand and measuring contracted freight volumes.
What does it tell me?
CLAV tells you when the amount of contracted freight is increasing or decreasing in the U.S. Contracted loads are heavily skewed towards the largest shippers and carriers and represent the core of truckload demand.
When accepted volumes decline while tender rejection rates stay flat or fall, that is an indication that freight demand is declining in aggregate and capacity should loosen.
When accepted volumes decline while tender rejection rates increase, that is an indication that carriers are pushing more capacity to the spot market.
When accepted volumes increase while tender rejection rates decrease, that is an indication that carriers are pushing capacity back to the contracted side. This means carriers see contract rates as on par or higher than spot rates and have sufficient capacity available.
When accepted volumes are flat or increase while rejection rates increase, that is an indication that the market is heading for a strong inflationary environment.