Evaluate weekly capacity changes.

FreightWaves Customer SuccessDaily Tips

Did you know? You can quickly see the markets with the most significant capacity changes over the past week with the Weighted Rejection Index

What is it?

Weighted Rejection Index (WRI) – The Weighted Rejection Index combines outbound tender market share (OTMS) and the weekly change in tender rejection rates (OTRIW). The purpose of this index is to quickly identify where rejections are having the largest impact by valuing rejection rate changes in larger markets more than smaller markets. The formula is simply OTMS x OTRIW for each market. 

For example: Atlanta has a market share value of  4.5% and outbound rejection rates increased from 3.51% to 3.83% this week or 0.32 percentage points. WRI.ATL = 4.5 x 0.32 = 1.44

Alternatively, the smaller Jackson, Mississippi market has an OTMS value of 0.279% and rejection rates have moved a greater amount over the past week –  0.42 percentage points. WRI.JAN = .279 x .42 = 0.117 

WRI
Weighted Rejection Index Map

Who needs it?

Carriers: Carriers can use the WRI to quickly see which markets are having the most significant changes in capacity on a daily basis. Identifying capacity shifts allows carriers to adjust spot market pricing faster than before. 

Brokers: Brokers can utilize the WRI in a similar manner to carriers – identifying which markets have the most significant changes in spot market pricing potential, but also to identify which markets need to be prioritized for finding capacity on a daily basis. 

Shippers: Shippers can use the WRI in a similar manner to brokers, using it to identify the markets most at risk for capacity failure on a daily basis.

What can I do with it?

Using maps and watchlists of the WRI helps users pinpoint the most significant changes in capacity each day. Larger markets with tightening capacity will be valued more than smaller markets, making it easier to identify where to focus attention each day. In essence, the WRI allows you to view which areas’ capacity changes impact the largest amount of freight each day. 

Show me how!

1) Click Map to view the Weighted Rejection Index in a gauge format.

  • Click on the blue + box in the top right corner
  • Scroll down to to the 3D Maps button
  • Click on the 3D Maps button and then click the gear icon to open the map options
  • Click on map layers and select markets
  • Enter WRI in the Color Index Selection box
  • Click on Trucking Supply Demand and select WRI
WRI

2) Click Watchlist to view the.

  • Click the blue + box in the top right corner
  • Scroll down to the Heat Map list option
  • Enter a name for the list in the white box
  • Click on Manage Symbols and click browse
  • Scroll down to Weighted Rejection Index and put a check in the XMKT box
  • Scroll down and click the Add Selected Items box then click Done in the bottom right corner.
  • Scroll down and click Save
WRI Heat Map

Pro Tip: Use WRI to prioritize markets in terms of attention on a daily basis

If you have questions about outbound tender volumes, please contact us at cs@freightwaves.com