Tender Reject Indices are measurements of carriers’ willingness to accept the loads that are tendered to them by shippers under contract terms. It is expressed as a percentage of loads rejected to total loads tendered. TRI is organized in terms of outbound, inbound, trailer type and length of haul. i.e. a carrier rejecting 2 of the 4 loads tendered would have a 50% TRI. See below for further descriptions of TRI by type.
Outbound TRI are tender rejection percentages organized by the origin market. Inbound TRI are tender rejection percentages organized by the destination market. In SONAR these are geographical markets labelled by the larger cities. i.e. the Atlanta (ATL) market covers central and northern Georgia. The OTRI.ATL would be the percentage of loads rejected versus the total loads tendered originating in the Atlanta market. The ITRI.ATL would be the percentage of loads rejected that deliver in the Atlanta market.
OTRI – Outbound tender rejection index
ITRI – Inbound tender rejection index
Tender rejections from the perspective of trailer type:
VOTRI/VITRI – Van tender rejection index (VTRI is a legacy index)
ROTRI/RITRI – Reefer tender rejection index (RTRI is now a legacy index)
FOTRI/FITRI – Flatbed tender rejection index (FTRI is now a legacy index)
IMOTRI/IMITRI – Intermodal tender rejection index
Length of Haul
Length of haul tender rejection rates allow you to see the load rejections by total distance traveled on the load. The mileage bands are listed below:
CTRI – City (local) loads that have a <100 mile length of haul, (CTRI is now a legacy index)
STRI – Short haul. Loads that have a 100-250 mile length of haul (STRI is now a legacy index)
MTRI – Mid length of haul. Loads that have a 250-450 mile length of haul (MTRI is now a legacy index)
TTRI – Tweener length of haul. Loads that are 450-800 mile length of haul (TTRI is now a legacy index)
LTRI – Longhaul length of haul. Loads that are 800+ mile length of haul (LTRI is now a legacy index)
LOTRI and TOTRI are also offered in market granularity where volume allows. Example LOTRI.LAX = longhaul tender rejection index for the outbound Los Angeles market
The TRI Deltas are 3 indices that measure the difference between the outbound tender rejection index for today and 1 week (OTRIW), 2 weeks (OTRIF), and monthly (OTRIM). i.e. the OTRIW.ATL = 1.5% today with the OTRI.ATL = 30.5% today. That means 1 week ago the OTRI.ATL = 29%. These variations of the TRIs are also available for the equipment type TRIs. i.e. National Reefer TRI weekly change = RTRIW.USA.
TRI lanes are tender rejection rates organized by an origin and destination lane pair. Lanes with enough volume will have a TRI lane. The ticker format is OTRI.3 digit origin market 3 digit destination market. Lanes are also offered in tri-delta format, showing weekly, bi-weekly, and monthly changes.
Example of a lane: If a user wanted to see the Los Angeles to Dallas tender rejection index, they would type OTRI.LAXDAL
Example of lane TRI-delta: If a user wanted to see the weekly change for the Los Angeles to Dallas TRI, they would type OTRIW.LAXDAL.
Anyone that has an interest in freight movement patterns. i.e. Shippers, freight brokers, fleet managers, executives in a transportation company, owner operators
The TRI is an indicator of carrier activity. The higher the TRI percentage the less carrier availability to move the freight at the contracted rate in the market. The reasons for a carrier to reject the load tender are 1) lack of capacity and 2) too low of a rate. Fast movements up or down in a market indicate potential spot market activity as well as freight volume surges and network imbalances.
Sub breakdowns of the TRI indices (the following are different organizational perspectives of the Tender Rejection Index):
Outbound tender rejections will tell you about carrier behavior in the origin market. The point of origin in trucking is the easiest to relate to as it is telling of the capacity in that market. The reasons carriers are more apt to reject loads from an origin perspective are when 1) capacity is low and 2) they can get a better rate moving other freight in the area.
Inbound tender rejections will tell you about general carrier attitudes about going into a market. Unlike the origin, the inbound side will be more descriptive of how a carrier feels about ending the load in a market. For instance, in a market with little freight coming out of it, carriers will be less willing to move freight into it. Weather and traffic patterns can also make a market less desirable.
Trailer type rejection rates will tell you about the types of freight that require specialized trailer usage. Freight that requires temperature controlled trailers like produce and alcohol will have an impact on the RTRI. For instance, when the produce harvests occur RTRI percentages will increase. A change in reefer trailer capacity can also help explain why capacity in general has changed, as those reefer trailers are not available for other types of freight. Dry van freight movement patterns will have an impact on the VTRI. Van freight is the largest trailer type represented as most freight can be carried in a van. Flatbed or open sided trailer activity will be represented by the FTRI.
Length of Haul
Length of haul tells you what carriers are more willing to accept in each mileage break. They are more indicative of the general market itself as it will describe what kind of hauls are available and desirable. If carriers are rejecting generally desirable regional freight with more frequency it is a sign that market capacity is tightening. It can also indicate the volume of freight available in each range is changing.