The Ontario, CA Outbound Tender Rejection Index increased 110 basis points in the past seven days to 6.16%. That is slightly above the national tender rejection rate after being significantly below the national tender rejection rate since early January.
The increase in tender rejection rate seems to be entirely driven by capacity reductions, likely in response to enforcement of labor laws. The Ontario Outbound Tender Volume Index (includes all equipment types and lengths of haul) is near its 52-week low and is down 22% month over month.
Comparing outbound Ontario, CA volume to outbound domestic rail intermodal volume suggests that intermodal is taking share from the highway. Containerized domestic intermodal volume outbound from the LA region (includes Ontario and the Inland Empire) is down 7% year over year versus long-haul (>800 miles) outbound Ontario truckload tenders which are down 41% year over year.
