A freight index is a calculation based on industry data. SONAR freight indices collect data from all trading parties. That includes carriers, shippers, forwarders and brokers. Analysis of that data creates a benchmarking standard.
In turn, that allows companies to analyze strategic positioning, monitor market conditions and make decisions based on forecasted data. That process, the lifecycle of tactical freight management, simply means that the index reflects the variables for a given lane or aspect of a supply chain at any time. The value of an index lies in its consistency. However, a single index itself only goes so far. That’s where the importance of understanding freight rate-impacting indices and their correlations comes into play.
How many indices are within SONAR?
SONAR continues to redefine the standards of excellence in shipping and supply chain management by compiling data consistently and accurately, looking for new correlations within data. SONAR is incredibly granular and cohesive, offering national, market and regional views into transportation/logistics industry activity. To date, SONAR contains 150,000+ unique indices with more in continuous development.
What are the benefits/implications of SONAR indices?
SONAR creates freight index accuracy, applicability and value for subscribers. Using near-real-time data, the full set of end-to-end analytics (descriptive, diagnostic, predictive and prescriptive analytics) generates granular and marketwide views into industry activity to pre-empt volatility. With an ever-evolving set of indices available, it’s possible to pair any two indices together to create a new view, value-add or improvement opportunity through SONAR. And that has a direct impact on the ability of an enterprise to continue benchmarking and improving throughput.
SONAR’s 4 most popular trucking indices + 6 more to power your strategic objectives
Here are the top trucking indices, as well as a few other core indices, to get started with the most proactive freight forecasting platform for current and future logistics management goals:
- Inbound/Outbound Tender Reject Index (ITRI/OTRI) – SONAR’s tender indices reveal carriers’ overall willingness to accept loads across national, state, lane and market-specific areas.
- Inbound/Outbound Tender Volume Index (ITVI/OTVI) – Tracking tender volumes provides insight into total tender volumes across all trailer types.
- Headhaul Index (HAUL) – SONAR Haul reveals the overall balance or lack thereof of freight volumes in a market over time.
- Outbound Tender Market Share (OTMS) – OTMS is a ratio of the number of loads by market compared to the total U.S. load volume.
- DHL Supply Chain Power Pricing Index (DHLPPI.USA) – This index shows general bargaining power in terms of shippers versus carriers based on weekly data analytics.
- TEU Volume Index – The TEU Volume Index measures the expected ocean import volume and is available by port and in week-over-week, month-over-month and year-over-year change views.
- Retail Sales (RESL) – A measure of current retail and food industry sales adjusted for seasonality and excluding taxes.
- Logistics Managers Index – A comprehensive dashboard that shows the top factors affecting warehousing decisions.
- Inbound/ Outbound Air Cargo (IAC/OAC) – These indices allow for faster assessment of air freight pricing in USD, euros or local currency.
- Total Outbound Rail Container Volume (ORAIL) – This index reveals the total intermodal volume moved throughout the U.S.