FreightWaves Pricing Power Index (FWPPI.USA)

WHAT IS IT?

A weekly analysis produced by the Freight Intel Group using data and analytics in SONAR and other sources to estimate the current pricing power dynamics between shippers and carriers.

WHO IS INTERESTED?

Shippers, Carriers, Brokers, Pricing Analysts, and Economists

WHAT DOES IT TELL ME?

Gives a high-level view of who holds the power in negotiating spot market rates and contract rate rebids. Also aggregates and synthesizes many data points including, but not limited to: freight volumes, rejection rates, spot rates, contract rates, economic data, and economic policy.

The FreightWaves Supply Chain Power Pricing Index (FWPPI) measures from 0-100. A score of 50 is neutral/equal strength in pricing power between shippers and carriers. When the FWPPI score drops below 50, it’s an indication that shippers have more control of pricing freight than carriers. As the FWPPI score declines closer to 0, the more control shippers have over the pricing of freight lanes. When the FWPPI score is above 50, it’s an indication that carriers are taking control of the pricing on freight lanes.

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Related Topics

TRAC Forecast

Key Market Areas (KMAs)

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