Daily Tip 08/02/2022: Outbound Tender Volume Index

Ashley McAvoyDaily Tips

Did you know? SONAR’s Outbound Tender Volume Index can show you which markets are shipping the most freight, along with the trends and changes in freight volumes.

Each day we’ll send you a daily tip designed to guide you to becoming a SONAR expert. If you have any questions, please contact your Customer Success Representative or email the team at cs@freightwaves.com.

Outbound Tender Volume Index (OTVI): An index of electronically tendered volumes on a given day. 

A tender is a load offer to a trucking company from a shipper or broker that is sent electronically. These are actual loads and are transmitted a few days before they are scheduled to be picked up. This is the most current and reliable indicator of market demand. 

The FreightWaves SONAR Outbound Tender Volume Index (OTVI.USA) shows tender load volumes for the U.S. Users can also drill down to specific regions and market granularity. The index was created with a base of 10,000 on a national level from March 1, 2018 volumes. OTVI.USA currently is at 12,391. This means that outbound tender volumes for the entire country are at 123.91% of their March 1, 2018 levels. The formula to calculate this is: 12,391/10,000 = 123.91%. 

SONAR users can use the chart feature to see how OTVI has trended over time. Users can also use the map feature to give a high elevation view of which markets have the most freight.

View Outbound Tender Volumes in the U.S. Map feature

Outbound Tender Volume – U.S. Map view

Carriers: Markets with darker shades of blue will provide the most freight to keep a carrier’s trucks rolling. The markets with lighter shades have lower freight volumes, signaling areas where there is less demand for capacity.   

Brokers: Know where your carriers want to go. Carrier rates can vary based on the destination of your load. Loads that deliver into a low-volume market might cost you a higher rate per mile than loads that deliver into high-volume markets.  

Shippers: OTVI allows shippers to monitor the outbound volumes in the markets they operate in. Shifts in freight volumes can lead to changes in capacity, applying upward or downward pressure to carrier rates.   

The OTVI was built to help users identify freight volumes that are shipping at national, regional or market granularity. Users can view this data on a U.S. Map, Tree Map or Chart to help them understand which markets are shipping the most freight, or in which markets freight volumes are declining. Shifts in freight volumes can affect capacity. An increase in freight volumes could tighten capacity, increasing carrier rates, while a decline in freight volumes could loosen capacity, causing carrier rates to fall.       

1) Click: U.S. Map to view outbound tender volumes at a high level to see which markets have the most freight.

  • Darker shades of blue indicate the markets with the most freight.
  • Lighter shades of blue indicate the markets with lower freight volumes. 

2) Click: Tree Map to view the 135 markets in an order that identifies the largest markets down to the smallest markets.  

  • Markets located in the top left corner represent the largest markets by volume.
  • As you move down and to the right from the top left corner, markets decline in volume.
  • Markets located in the bottom right corner represent the smallest markets by volume.
  • Volumes have increased from the previous day in markets shaded green. 
  • Volumes have decreased from the previous day in markets shaded red.

3) Click: Chart to view the historical trends and changes in national volumes.

  • SONAR subscribers can use the Charts feature to view historical data at a market level by changing USA (OTVI.USA) to the airport code of the market you wish to view. (For example OTVI.MEM for the Memphis market.)
  • Outbound tender volumes can be broken down by trailer type by adding a V for Dry Van or R for Reefer. Ex. VOTVI.USA, ROTVI.USA/VOTVI.MEM, ROTVI.MEM.

Pro Tip: Use OTVI in conjunction with the outbound tender rejection index (OTRI) to optimize your freight rates.  

If you have questions about outbound tender volumes, please contact us at cs@freightwaves.com. 

Happy Hauling,

FW Team