Did you know? You can pinpoint markets carriers are less willing to deliver to using Inbound Tender Rejection Rates.
What is it?
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 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 that are delivering into Dallas.
ITRI for the Dallas market = 7 / 100 = .07 or 7.00%
Who needs it?
Carriers: Carriers receive multiple load offers daily that deliver to multiple markets across the nation. ITRI can help carriers decide which are the best markets for their trucks to deliver into, or if they need to adjust their rate accordingly based on the market conditions of the destination market.
Brokers: ITRI can help brokers price lanes. Lanes with an elevated ITRI (blue) is 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 will help 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 would be a signal for carriers to extend tender lead times to open up more carrier options to ensure capacity for their load. If shippers have to shift their loads to the spot market for coverage, loads with a higher ITRI could increase carrier costs.
What can I do with it?
ITRI will inform SONAR users about general carrier attitudes on delivering freight into a certain market. The higher the ITRI percentage the less the carrier is willing to move freight into a market at the contracted rate. Undesirable market conditions in the destination market can push ITRI up, while competitive market 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 10.76%, while Atlanta (ITRI.ATL) has an ITRI of 3.67%. Carriers are more willing to deliver loads into the Atlanta market at a contracted rate over the Louisville market. In order to get a carrier to run a load into Louisville, carrier’s will want a higher rate.
Show me how!
1) Click U.S. Map to view the inbound tender rejection rate index at a high level to see which markets carriers are willing, or less willing, to deliver freight.
- 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 rate index.
- Markets with elevated rejection rates indicate markets that carriers are less willing to deliver to at a contracted rate.
- Markets with low rejection rates indicate market rates that carriers are more willing to deliver to at a contracted rate.
If you have questions about outbound tender volumes, please contact us at email@example.com.