Rising Reefer Rejection Rates Signal Potential Volatility in Refrigerated Trucking Market

Both the Reefer Outbound Tender Reject Index (ROTRI) and Reefer Truckload Index (RTI) show an upward trend in the refrigerated trucking market. ROTRI, indicating carriers refusing loads, has stayed above 8% since June, higher than the past two years. RTI, reflecting average spot rates, has increased by 13% since April. Last year saw similar volatility, with rejection rates fluctuating between 5% and 11% due to seasonal harvests and weather conditions. However, this was followed by a downturn, potentially linked to the recession in the dry van sector. While the smaller data size of reefer tenders contributes to its volatility, the recent upward trend in the refrigerated market is notable, especially as the dry van sector also shows signs of recovery. This is because the two sectors are somewhat interchangeable, with van drivers potentially shifting to refrigerated trucking.