After spiking to over 8.5% in the days surrounding Thanksgiving, the Ontario outbound tender rejection rate has retreated to 4.9%, roughly in line with the average in October and early November.
Ontario outbound tender volume is roughly at the midpoint of its 52-week range, and is up 15% month over month, reflecting seasonality. But that volume is still down 11% year over year, reflecting weak freight demand and an apparent share loss to rail intermodal.
Despite the retreat in tender rejection rates in recent days, spot rates are rising for most lanes outbound from Ontario, likely still reflecting some difficulty sourcing capacity around Thanksgiving.
Ontario and Los Angeles outbound tender rejection rates are sensitive to holidays because relatively few drivers live out west. Last Christmas, Ontario tender rejections spiked to about 10%, in line with the national average. If Thanksgiving is an indication, it may be even more difficult to source capacity in Ontario around Christmas this year.
