Breaking

Tender Rejections Surge Past 14% as Labor Day Demand Pressures Tight Capacity

The national Tender Rejection Index has climbed above 14% for the first time since early August. This marks the fastest rejection rate increase during the Labor Day period in three years, reflecting early holiday demand colliding with constrained carrier capacity rather than fundamental freight growth. Rejection rates had stabilized near 13% during July and August, but industry analysts caution this plateau does not signal an end to market tightness. Capacity expansion remains modest, having merely slowed its contraction rate over a six-to-seven-month period. Spot rate trends diverge sharply across modes. Flatbed rates remain elevated from data center construction activity but drift lower, suggesting the market may be overheated. Refrigerated rates hold steady on seasonal produce demand, while van rates display volatility unseen since the pandemic. The divergence underscores how readily modest demand increases can disrupt this supply-constrained market.