Weighted Rejection Index

FreightWaves Customer SuccessTrucking Supply/Demand

What is it?

The Weighted Rejection Index (WRI) is the product of Outbound Tender Market Share (OTMS) and Outbound Tender Rejection Index Weekly Change (OTRIW) for an individual market. The formula is: 

OTMS x OTRIW = WRI

For example Atlanta’s Outbound Tender Market Share value is 4% and outbound rejections increased from 3% to 5% over the past seven days. The calculation would be:

4 x (5-3) = 8 WRI

Who is interested?

Brokers, Carriers, Shippers, Pricing Analysts

What does it tell me?                                   

The WRI gives users a way to prioritize tender rejection rate changes by market size. A change in tender rejection rates in a low volume market are not as significant as a rejection rate change in a larger market. Looking at WRI by market on a heat map or watchlist allows you to target the most relevant areas on any given day by placing a higher value on larger market changes. In the map below a broker would see dark blue markets and know to price those markets higher today on the spot market and cover any managed transportation freight first that day. The value is not in the number by itself, but in comparison to other market WRIs.