Daily Tip: Inbound Tender Reject Index (ITRI)

FreightWaves Customer SuccessDaily Tips

Did you know? You can pinpoint markets that carriers are less willing to deliver to by using Inbound Tender Rejection Rates.

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

SONAR’s Inbound Tender Rejection Index (ITRI) rates are measurements of carriers’ willingness to deliver loads into a market that are tendered to them by shippers under contract terms. It is expressed as a percentage of loads rejected to total loads tendered. Very similar to the Outbound Tender Rejection Index (OTRI), ITRI uses the destinations as a basis of measurement. ITRI can be viewed at a national, regional, state or market level, and can be broken down by both trailer type and length of haul. 

Example: There are 100 tendered loads accepted that are delivering into the Dallas market, and 7 loads rejected to be delivered into Dallas. 

ITRI for the Dallas market =  7 / 100 =  .07 or 7.00% 

View inbound tender rejection rates in the U.S. Map feature.

Inbound Tender Rejection Index – U.S. Map view

Carriers: Carriers receive multiple load offers daily for delivery to multiple markets across the nation. ITRI can help carriers decide which are the best markets for their trucks to deliver into. ITRI can also help carriers determine if they need to adjust their rates based on the market conditions of the destination market. 

Brokers: ITRI can help brokers price lanes. Lanes with an elevated ITRI (blue) are a signal that carriers will need a higher rate to deliver into that market, and destination markets with a low ITRI (white) might allow brokers to lower their bids on certain lanes. Knowing where carriers are willing to deliver helps brokers target certain destination markets. 

Shippers: ITRI will give shippers visibility into possible rate fluctuations on their lanes based on the market conditions of the destination. Lanes with an elevated ITRI are a signal for shippers to extend tender lead times to open up more carrier options, better ensuring capacity for their loads. If shippers have to shift their loads to the spot market for coverage, loads with a higher ITRI could increase shipper costs.   

ITRI informs SONAR users about general carrier attitudes on delivering freight into a certain market. The higher the ITRI percentage, the less carriers are willing to move freight into a market at the contracted rate. Undesirable conditions in the destination market can push ITRI up, while competitive conditions in the destination market can push ITRI down. When the national freight market starts to soften, carriers have fewer options to keep their trucks moving and are more willing to accept the freight they are offered, which will push ITRI down across all markets.     

Louisville, Kentucky (ITRI.SDF) has an ITRI of 9.45%, while Atlanta (ITRI.ATL) has an ITRI of 7.82%. Carriers are more willing to deliver loads into the Atlanta market at a contracted rate than they are to deliver to the Louisville market. In order to get a carrier to run a load into Louisville, the carrier will want a higher rate. 

         SONAR Ticker : ITRI.SDF, ITRI.ATL 

1) Click U.S. Map to view the ITRI at a high level to see the markets carriers are willing, or less willing, to deliver freight into. 

  • Markets that are shaded a darker blue indicate a higher percentage of contracted loads being rejected into that market.
  • Markets that are shaded a light blue or white indicate a lower percentage of contracted loads being rejected into that market. 

2) Click Chart to view the historical trends and changes in the Inbound Tender Rejection Index.

  • Markets with elevated rejection rates indicate markets that carriers are less willing to deliver to at a contracted rate.
  • Markets with lower rejection rates indicate markets that carriers are more willing to deliver to at a contracted rate.

Pro Tip: When choosing between which lanes to accept or decline, checking out the ITRI on each of the destinations may help you choose the best lane. The HAUL, OTRI or OTVI indices of the destination market might explain why carriers are willing, or less willing, to deliver into a market. 

If you have questions about the inbound tender rejection index, please contact us at cs@freightwaves.com. 

Happy Hauling,

FreightWaves Team